Surveillance: ECB Adds to Fed Gloom
Bloomberg Surveillance
00:00
Can the Fed Substitute a Certain Level of Interest Rates?
John Ryding: Can the Fed substitute a certain level of interest rates for getting up to a Bullard-like excess terminal rate? TK: Yes, I think they can. But the difference between the Fed is that they have policy rates getting at least close to if not in restrictive territory. And when they're planning to get an ongoing process, it's going to get rates higher and then they can let those rates sit. The problem with the bank from the ECB is policy rates are nowhere near restrictive.
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