The Puzzle of Higher Interest Rates and Their Impact on the Economy
===============
#aa2634d8 ver:0.26
Despite predictions of economic collapse, higher interest rates have not had a significant negative impact. The transmission mechanism between monetary policy and the economy appears weaker, with long-term bond yields lower than short-term yields. However, the US economy may face challenges when spending is reined in. Investors are choosing safer government debt over riskier assets due to elevated interest rates. Some experts argue that rate cuts may be needed to combat inflation effectively. The Federal Reserve's focus on raising rates may be a miscalculation, failing to consider technological advancements and demographic shifts. The Fed is puzzled by the lack of impact from high rates and will discuss easy financial conditions at their meeting. While the current situation is different, potential risks and uncertainties remain. #InterestRates #MonetaryPolicy #Economy...
#newstr #InterestRates #Economy #MonetaryPolicy #Recession #EconomicPerformance
https://here.news/story/aa2634d8?ver=0.26
Inflation Continues to Impact Bond Markets Despite Volatility /
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2024-06-11 16:57:49
Author Public Key
npub1azpjdnkx90pqtdpyvnw2ysvz06xy3k9kqnxd59geu535kaavnvesuzmx0nPublished at
2024-06-11 16:57:49Event JSON
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"content": "The Puzzle of Higher Interest Rates and Their Impact on the Economy\n===============\t\n#aa2634d8 ver:0.26\n\nDespite predictions of economic collapse, higher interest rates have not had a significant negative impact. The transmission mechanism between monetary policy and the economy appears weaker, with long-term bond yields lower than short-term yields. However, the US economy may face challenges when spending is reined in. Investors are choosing safer government debt over riskier assets due to elevated interest rates. Some experts argue that rate cuts may be needed to combat inflation effectively. The Federal Reserve's focus on raising rates may be a miscalculation, failing to consider technological advancements and demographic shifts. The Fed is puzzled by the lack of impact from high rates and will discuss easy financial conditions at their meeting. While the current situation is different, potential risks and uncertainties remain. #InterestRates #MonetaryPolicy #Economy...\n\n#newstr #InterestRates #Economy #MonetaryPolicy #Recession #EconomicPerformance \n\n https://here.news/story/aa2634d8?ver=0.26",
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