The Fed has announced their expectations for tightening over the next three years, yet inflation is running low, The Fed is hiking rates now because of the time lags between policy changes and inflation. But the lags are not only long but variable, making this a risky policy.
The Fed has announced their expectations for tightening over the next three years, yet inflation is running low, The Fed is hiking rates now because of the time lags between policy changes and inflation. But the lags are not only long but variable, making this a risky policy.
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