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Did The Federal Reserve Just Back Down? | Joseph Wang

Inflection Point

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The Effect of Interest Rates on Inflation

If interest rates right now were at zero and the Federal Reserve did no hiking whatsoever, do you think inflation would have been higher or lower? There's definitely a channel between wealth and inflation. The bond market doesn't seem to be that responsive honestly. They do not predict a 5% inflation. It seems to be quite happy having negative real returns. So I don't know if the bond market is actually as sensitive as many people think.

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