Free Trial

Waller: Real Rates Pretty Close To Sufficiently Restrictive

FED

Waller on real rates close to sufficiently restrictive:


Paraphrased remarks from Q&A. "Looking at very short-term forecasts out, rates are restrictive. When you get close to 5% rates and inflation is 3-3.5%, you’re talking about real rates of 1.5-2%. Looking forward, market’s view of inflation is looking at 2.5-3% by end of year. A 2% real rate by most models is probably pretty close to sufficiently restrictive."


The headline that Fed policy is pretty close to sufficiently restrictive helps nudge FOMC-dated OIS terminal briefly to 4.89% but still relatively minimal change on the day.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.