For the past few months, the US economy has been poised in a precarious position: core inflation stubbornly persistent at a smidge above 3% YoY (above the Fed’s target of 2%), job market showing signs of weakness, and unemployment jumping to 4.3% in July (a three-year high).

The market has, by all means, had a great start to the year. Nvidia has doubled. The Dow has repeatedly come close to breaching a historic 40,000 level. The Nasdaq has risen 11%. The S&P has risen by close to 10%.
But there’s an important catch to this market rally.

In early December, The Reserve Bank of Australia (RBA) lifted interest rates for the eighth consecutive month, taking its benchmark to 3.1%.