Harvard’s Rogoff Sees 10-Year Yield North of 4% in Coming Years

Ex IMF official sees higher real inflation-adjusted rates

Fed will have trouble containing inflation at 2%, Rogoff says

“Real interest rates are going to be higher and probably inflation’s going to be higher,” he said in an interview with Bloomberg Television’s David Westin and Romaine Bostick for Wall Street Week. You could “certainly see having a nominal rate that could be north of four for the 10-year rate though the decade.”

The Harvard University professor sees real rates on average settling in at “somewhere between one and two” percentage points, probably in the middle of that range. That compares with a rate of around a half percentage point prior to the pandemic, according to many economists.

Bloomberg 6 juni 2023 

https://www.bloomberg.com/news/articles/2023-06-06/harvard-s-rogoff-sees-10-year-yield-north-of-4-in-coming-years

When Olivier Blanchard was IMF chief economist in 2010, he argued that inflation targets should be raised to 4 per cent.

Kenneth Rogoff FT 16 July 2021

Englund: US inflation today is much more like good news than bad - Rogoff (englundmacro.blogspot.com)