See Bill Mitchell’s blog post below. He argues (and well argued in my opinion) that the elite wants to inflict pain on the economy, regardless of the current situation. Brazil’s inverted interest rate curve clearly indicates that the financial markets expect recession to come, that inflationary pressures are transitory, yet the Brazilian Central Bank will have to keep interest rates high to counteract the Fed’s hawkishness, or risk currency devaluations and higher inflation from that.

Brace yourselves, recession is on purpose, and its meant to make you poorer.

Bill’s blog post: Elites using monetary policy to deal with paranoid fears that power might shift towards workers

From Bloomberg: ‘Inflation Fever’ Is Finally Breaking — But Central Banks Won’t Stop Hiking Rates