Inflationary Issues

inflationary issues_1 With inflation rates and inflation expectations declining and the yield curve flattening, the Fed may find it more difficult than they thought to raise rates by one-quarter of one percent this coming September. If that’s the case, the Fed could instead begin to reduce the size of its balance sheet by $10 billion/month and wait till December to raise rates in the hopes that inflationary pressures build in 17Q4.

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