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Real interest rates are still negative. A mere half-point rate hike doesn't "fix" that. Two rate hikes are likewise insufficient. The Fed's target is at 0.75-1.
by fennecfoxen 4y ago
Real interest rates are still negative. A mere half-point rate hike doesn't "fix" that. Two rate hikes are likewise insufficient. The Fed's target is at 0.75-1.00% and inflation's still over 8%.
- _njyk 4y agoI agree, the rate hikes are still very shy, and the supply-chain issues are not going to improve prices. Estonia (where I live in Europe) has 20.3% inflation, it's insanely bad and the ECB is a snail to react to the situation and still claiming "this is transient, don't worry".
- puranjay 4y agoMost institutions are very slow to react by and large since there is a big lag between on-ground reality and financial data. This is why you'll often see experienced investors and fund managers often defer to their "gut instincts" and talk a lot about subjective experiences ("I feel") vs just hard data.
- rvnx 4y agoIt's very refreshing to hear such :)