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The Market's Concerns About Rising Rates
Central bankers want interest rates to go higher. They see inflation is very high and Lagarde says that their forecasts have upside risk. The problem is that the spreads don't stay tight unless the ECB is buying then it won't raise rates. Yes, let's stop buying but this is a constraint that Is arbitrary really It doesn't have to do that you have someone at the ECB who suggested that hey, maybe we can keep some of our asset purchases But raise rates.