BlackRock’s Krautzberger Expects More Policy Divergence

The video discusses the persistence of low inflation and the potential for policy innovations to address it, such as allowing inflation to overshoot to balance averages. It explores the concept of policy divergence, particularly between the ECB and the Fed, and its implications for market pricing. The discussion also touches on economic convergence, potential recession risks, and the impact of external factors like the strong U.S. dollar on the manufacturing sector.

Discuss the potential impact of a recession on the Fed's monetary policy.

What are the concerns regarding the manufacturing sector in the US economy?