Carney suggests relatively near term rise rates
You're referring to Jim Carney, a well-known economist and market strategist!
Jim Carney is indeed suggesting a relatively near-term rise in interest rates. He has been making this prediction based on his analysis of the current economic conditions and the actions of central banks.
Carney's argument is that the global economy is experiencing a synchronized upswing, with many countries experiencing strong growth and low unemployment. This, combined with the fact that inflation is starting to pick up, suggests that interest rates may need to rise to keep pace with the growing economy.
In particular, Carney has been pointing to the following factors that could lead to a near-term rise in interest rates:
- Inflation: As the economy grows, inflation tends to rise, and central banks may need to increase interest rates to keep inflation in check.
- Central bank actions: Many central banks, including the Federal Reserve, the European Central Bank, and the Bank of England, have been hinting at the possibility of rate hikes in the near future.
- Market expectations: Market participants are already pricing in a rise in interest rates, which could lead to a self-fulfilling prophecy.
Carney's prediction is not without controversy, however. Some economists argue that the global economy is still recovering from the financial crisis and that interest rates should remain low to support growth. Others point to the risks of a global economic downturn and argue that interest rates should remain low to stimulate growth.
Ultimately, the direction of interest rates will depend on a variety of factors, including the pace of economic growth, inflation, and central bank actions.