Higher (Real Rates) For Longer

Published on February 20, 2024 by Premium

The recent bout of higher inflation prints and resurgent labor market strength changes the timing and number of rate cuts, but does not change the direction of monetary policy. Fed officials note the risks between their employment and inflation mandates are more balanced, so they are increasingly mindful of potential overtightening. Fed officials have widely articulated a framework that views policy through the lens of real interest rates and a neutral rate that is little […]

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