5min chapter

Forward Guidance cover image

Slaying the Inflation Dragon | Jurrien Timmer

Forward Guidance

CHAPTER

The Fed's Quantitative Tightening Strategy

At the beginning of the year, no one would have forecasted that real yields would be this high. How much more damage do you think the financial system can take before the Federal Reserve takes another look at things and says actually we're not going to go through with it? The typical cycle is the Fed when it eases it goes about two 300 basis points below our star so our star is the neutral rate.

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