Fed said accelerate the pace of its tapering, eyed three hikes of its benchmark interest rate 2022
to 0.9% by the end of 2022, to 1.6% by the end of 2023 and 2.1% by the end of 2024.
many in the markets think that the Fed won’t be able to raise policy rates anywhere close to 2.5%.
MarketWatch 15 December 2021
If the Fed follows recent practice and raises rates a quarter point at each meeting starting in mid-2022, it might add up to a 1.25% hike by the end of next year. If inflation does what I think it will do, that will still leave negative real interest rates of -3%, still extraordinarily accommodative.
But would markets tolerate anything tougher? Probably not.
John Mauldin 10 December 2021
https://englundmacro.blogspot.com/2021/12/imagine-you-are-jerome-powell-in-early.html
Near Zero until 2023. Really?
The market will force the Fed to act earlier, I think.
https://englundmacro.blogspot.com/2021/06/near-zero-until-2023-really.html
Kommentarer