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Are US interest rates high enough to beat inflation? The Fed will take its time to find out

  • Traders project U.S. rates to reach 4% by the decade's end, exceeding policymakers' 2.6% forecast. Euro area rates are anticipated to hit 2.5%, above historical levels.
  • Uncertainty surrounds accurately predicting rate stabilization, with differing opinions on R-star post-financial crisis. The challenge lies in assessing its calculation, current status, and potential rise.
  • BNY Mellon Investment Management's economist, Shamik Dhar, warns of potential market underpricing due to a perceived increase in R-star.
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Winnipeg Free PressWinnipeg Free Press
+17 Reposted by 17 other sources
Center

Are US interest rates high enough to beat inflation? The Fed will take its time to find out

WASHINGTON (AP) — The sharp interest rate hikes of the past two years will likely take longer than previously expected to bring down inflation, several Federal Reserve officials have said […]

·Winnipeg, Canada
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Bias Distribution

  • 41% of the sources are Center
41% Center
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Paragould Daily Press broke the news in on Saturday, May 11, 2024.
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