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The long-end disconnect helps to explain why the Fed is struggling to control inflation

This is a chart the Federal Reserve and market participants are thinking about right now.In the past, 10-year rates roughly matched Fed funds but this time there's a 120 basis point gap. What that means is that hiking to 5.25-5.50% isn't as restrictive as it was in the past.Some of that gap is being closed with rates rising but much of the thinking around the Fed is about the front end, while a great deal of real-world borrowing is benchmarked from the long end.The interplay between the short-an... Read More

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Content Topics

Long

End

Disconnect

Helps

Explain

Struggling

Control

Long end

Inflation

Forex

Posted: Sep 28 2023, 13:00

Author Name: forexlive

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