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Does Low Inflation Justify a Zero Policy Rate?
Market-based measures of inflation expectations have declined to low levels in recent months, but rebounded since mid-October.
Click to enlarge.
ZIRP-a-Dee-Doo-Dah!
Source Data:
St. Louis Fed: Custom Chart
2 comments:
I hope they embark on 17 straight rate hikes like they did starting in June, 2004. That worked out great!
Looks like deflation has Bulltard by the horns.
17 rste hikes and/or bust!
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