4 ms·
I'm surprised, coming from the Fed, this article seems to completely ignore the effects of 8%+ inflation.
by nightski 4y ago
I'm surprised, coming from the Fed, this article seems to completely ignore the effects of 8%+ inflation.
- wardedVibe 4y agoAll of these are denoted in real terms, so yeah, you can just ignore inflation.
- nightski 4y agoReal terms only work in the past. These are future predictions about interest rates staying high. They would need to be making estimates about future inflation then and if history is any indication the fed always gets it wrong. Remember, inflation has been extremely low during the period of low interest rates as well which they are referring to. If inflation stays high, even with high interest rates, that will make a big difference.