- Rates cannot go lower but higher rates would destroy wealth and lead to a recession.
- The FED is in a difficult position and rhetoric shifts can be expected.
It is every central banker’s target, the elusive 2% rate of inflation. We cannot know when, but should expect that it will be achieved and prepare accordingly. Since rising interest rates help to keep inflation in check, once the target is reached, as strange as it sounds, rates should also rise to compensate. This article is going to analyze what is happening, what will probably happen, and how it will affect investments. More →