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Interest rates have yet to respond because they are being held down actively by central banks. Those are not market forces.
by pishpash 6y ago
Interest rates have yet to respond because they are being held down actively by central banks. Those are not market forces.
- NeutronStar 6y ago> Those are not market forces. Neither is printing money.
- ahepp 6y agoI actually mis-spoke. I meant to say "inflation has yet to respond". Interest rates is the manipulated variable, inflation is the observed. Appreciate you catching that.
- imtringued 6y agoI agree. The interest rates should be mildly positive and go up over time. Inflation is almost on track in the US. The only missing piece is a public declaration that there will be no more easy money in the future. That will drive up inflation to slightly above 2% because everyone will be scrambling to do productive work.