Lena Petrova: The Great Financial Squeeze Returns

For the past two years, economic circles and financial markets have been keenly focused on the anticipated moment when interest rates in the US would finally begin their descent. This expectation, nurtured by a series of rate hikes designed to curb inflation, has recently been met with a significant pivot. There’s a new, compelling narrative emerging: not only might rates stay elevated longer, but they could even rise again. This shift carries profound implications, not just for the US but for the entire global economy. A recent policy speech by Federal Reserve Chair Kevin Warsh on June 18th marked a…