Last week was significant. It signalled the dawn of a new phase in the business cycle where central banks will turn
their priorities away from outright inflation targeting to supporting economic growth. The Fed was very clear in its
assessment of the US economy and expressly mentioned the labour market as being a concern. Therefore, interest
rates in the US will drift lower as the Fed tries to support economic growth; however, it also signals the shift in
certain leading indicators that signal the risk of recession.