Report
Does the Federal Reserve really want to fight inflation?
The tone of the Federal Reserve has changed significantly in the last month, and it has now announced that it is serious about fighting inflation. But what would it really mean to fight inflation in the United States ? If the Federal Reserve were to behave as it did in the 1980s-1990s-2000s, it would raise the Fed Funds rate to 9 %, which is not at all what it has announc ed or what the financial markets are anticipating. It can therefore be concluded that the Federal Reserve does not intend to actually fight inflation, which may mean that: Inflation will not fall and real interest rates will remain highly negative; The US economy nevertheless will suffer from the limited rise in interest rates, as the loss of growth is quite pointless if it is not counterbalanced by a fall in inflation; For investors, real assets will remain a good hedge against inflation.
Provider
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
Other Reports from Natixis
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.