Adrift at Sea

Published on August 28, 2023 by Premium

A couple key assumptions that underpin the interest rate views of some market participants are potentially shifting higher. Standard macroeconomic thinking views nominal interest rates as in part determined by the central bank's perceived neutral rate ("r*") and it's inflation target. There is growing discussion that both the neutral rate has risen and that the Fed's inflation target should be higher. The possibility of such a shift would likely impact the investment decisions of some […]

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