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.

Share This Post
Facebook Twitter Email

Speak Your Mind


This site uses Akismet to reduce spam. Learn how your comment data is processed.