explanade
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- May 10, 2008
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Was listening to a podcast, apparently the Fed governors are periodically asked to predict the teminal feds fund rate in the future.
They plot all these different predictions and for now, the prediction is 5.1% by the end of 2023. That is, most of the predictions cluster around that figure.
Well we're at 4.25-4.5% I believe.
Does that mean they'd go up to around 5.1% and stop? That could be just two more tightenings.
Or they'd go up to say 5.5-6% and then maybe roll it back towards the end of next year to end up around 5.1%?
They plot all these different predictions and for now, the prediction is 5.1% by the end of 2023. That is, most of the predictions cluster around that figure.
Well we're at 4.25-4.5% I believe.
Does that mean they'd go up to around 5.1% and stop? That could be just two more tightenings.
Or they'd go up to say 5.5-6% and then maybe roll it back towards the end of next year to end up around 5.1%?