Tag: monetary policy
Traders hit snooze on central bank alarms
One of the oldest sayings in finance is very simple, “Don’t Fight the Fed”… As Bloomberg points out in today’s story Central Bankers Tell the World Borrowing Costs Are Headed Higher, the world’s central bankers (including the Fed) are signaling higher interest rates… The markets have not yet gotten the message, lulled to sleep by […]
The Sasquatch of macro indicators
Economic theory says that there is a perfect “neutral interest rate” where everything stays in line… Mohamed A. El-Erian discusses this in his Bloomberg opinion piece What You Should Know About r*… There’s just one small problem… “r* is not directly observable”… This means that the correct level is only know with 20/20 hindsight…
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