Surveillance: Bigger Picture with Calvasina
Bloomberg Surveillance
00:00
The Fed's Response to Higher Interest Rates
Is your study, Dr. Kazwin, that the modern Fed will react to higher interest rates? Do they actually, you know, if we breach through and we start talking a 6% level, furoly ages or whatever it is? Well, I think when you look at the move up in 10 year olds, we've been seeing in the last month or eight weeks, I think some of that is a tightening in financial conditions as we reprice the Fed. Some of it is also taking out recession risk and you can see more broadly financial conditions moving up. So I think the Fed is, as you can see, struggling to figure out where is the right degree of restrictiveness
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