Wishful thinking ignores unprecedented tightening

Wishful thinking ignores unprecedented tightening
Fed chair Jerome Powell is willing to risk recession. (Image: Getty)
Jenny Ruth
Financial markets are behaving as if investors are convinced we’re in for a soft landing, but I’m afraid this is a dangerous case of wishful thinking.Our benchmark S&P/NZX 50 index has gained 6.3% year-to-date while the US S&P 500 index had gained 7.4% and the tech-heavy Nasdaq 14.7% as of our Friday.Is this rational when both our Reserve Bank and the US Federal Reserve are still hiking interest rates?Why would you believe in a soft landing when central banks have never tightened so much so quickly before?Our central bank ha...

More Economy

Monthly CPI tech takes Stats NZ into the future
Economy

Monthly CPI tech takes Stats NZ into the future

Budget funding for new inflation-reporting tech is a giant leap forward, agency says.

Maria Slade 27 Jun 2025
Corporates think NZ 's on the up: Forsyth Barr
Primary Sector

Corporates think NZ 's on the up: Forsyth Barr

The Pulse of NZ Business survey found construction and retail continue to lag.

Gregor Thompson 25 Jun 2025
S&P/NZX 50 Index opens down after US strike on Iran
Economy

S&P/NZX 50 Index opens down after US strike on Iran

NZD/USD also under pressure as investors seek safe haven. 

Rebecca Howard 23 Jun 2025