Rather than hiking rates and tightening monetary policy, two of the City of London's most renowned pessimists believe the U.S. Federal Reserve will soon cut them into "deeply" negative territory.
Societe Generale's Albert Edwards and Bob Janjuah, senior independent client adviser at Nomura, are two notoriously bearish - but widely-followed - strategists and made the conclusion over that very British tradition -- a cup of tea.
"I enjoyed afternoon tea with my fellow strategist Bob Janjuah of Nomura," Edwards said in his latest note published on Thursday.
"The next U.S. recession will probably arrive a lot sooner than most investors expect and will likely see more desperate monetary experimentation from the Fed. Bob and I thought that this time we would see deeply negative interest rates in the U.S. (and Europe)."