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3% is still super low historically. Let's wait and see how the economy actually reacts to the rising rates. Back in 2019, the Fed got cold feet and started lowe
by simulate-me 4y ago
3% is still super low historically. Let's wait and see how the economy actually reacts to the rising rates. Back in 2019, the Fed got cold feet and started lowering rates after hitting ~2.5%. The amount of money in the system is also unprecedented. Judging by the reverse repo rate, people are sitting on $2T with nothing to do with it. Maybe higher interest rates will bring that down, but inflation looks like it will remain high for some time.
- incomingpain 4y ago>3% is still super low historically. Let's wait and see how the economy actually reacts to the rising rates. It just dropped 1.4% because of a 0.25% increase. Yikes. >Judging by the reverse repo rate, people are sitting on $2T with nothing to do with it. They are hedging their bets, not doing nothing with it. >but inflation looks like it will remain high for some time. About 1.5-2 years is my guess.