Gold News Hubb
Advertisement Banner
  • Home
  • News
  • Gold Mining
  • Contact
No Result
View All Result
  • Home
  • News
  • Gold Mining
  • Contact
No Result
View All Result
Wellnessnewshubb
No Result
View All Result
Home News

New York Fed’s Williams says interest rates need to top inflation rate to get prices under control

admin by admin
December 22, 2022
in News


MarketWatch/Jeffrey Bartash/12-16-2022

“In market parlance, a real interest rate is one that is above inflation. The rate of inflation right now, using the Fed’s preferred personal-consumption-expenditures, or PCE, price gauge, is 6%. That’s markedly higher than the current 4.25% to 4.5% fed-funds rate”

USAGOLD note: If you are a regular reader of this page, this argument will sound familiar. We are a very long way from achieving the positive real rate  milestone. Too, the PCE price index, though preferred by the Fed, excludes food and energy prices, so how realistic is it as a real treasure of inflation? The inflation rate, as measured by the more worldly Consumer Price Index is 7.1%. Shadow Government Statistics, which tracks the inflation rate using the Labor Department methodology of the 1980s, puts the inflation rate at 15%. By either measure, the ten-year Treasury yield at roughly 3.5% leaves a substantial gap that needs to be breached for investors to achieve a real rate of return.

10-year US Treasury yield vs the inflation rate


Chart courtesy of TradingView.com

Share

This entry was posted in Today’s top gold news and opinion. Bookmark the permalink.



Source link

Previous Post

Markets Are Wrong on Fed Rate Hikes, Morgan Stanley’s Caron Says

Next Post

The Fed Is Making Things Up as It Goes Along

Next Post

The Fed Is Making Things Up as It Goes Along

Recommended

Inflation may have eased, but a ‘number of factors’ will make it ‘tick back up’ this year: Former WH economist

3 weeks ago

The period of abundance is over

5 months ago

© 2022 Gold News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • News
  • Gold Mining
  • Contact

Newsletter Sign Up.

No Result
View All Result
  • Home
  • News
  • Gold Mining
  • Contact

© 2022 Gold News Hubb All rights reserved.