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Danny Dayan: Reacceleration Risk Threatens Bond Market, Demographics In U.S. Are Inflationary (Not Deflationary)

Forward Guidance

NOTE

Assessing Restrictiveness in the Economy

Comparing historical data on bond rates, household vulnerabilities, and inflation levels, the current 10-year rate is seen as less restrictive. Despite a brief period of 10-year rates exceeding core CPI and nominal GDP, the economy is not considered restrictive by historical standards.

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