Submitted by nonasiandoctor t3_yi0vco in wallstreetbets
Such-Wrongdoer-2198 t1_iui71s6 wrote
Reply to comment by robotraitor in The terminal rate does not need to go above inflation. by nonasiandoctor
True, but it's a dynamic system. Powell's statement doesn't mean that the peak Fed Rate must exceed the peak inflation rate. Just that the overnight rate must exceed inflation before equilibrium can be achieved. The Overnight rate may need to go up more, but inflation could also come down (it has).
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