The Federal Reserve still has a lot of work to do regarding inflation: if there is no longer any talk of further rate increases, the hypothesis of a very long period of rates at these levels remains valid.
The president of the Federal Reserve Bank of New York,
John Williams said last night on the topic that interest rates will have to remain at restrictive levels “for some time” to bring inflation back to the 2% target set by the US central bank. “We will continue to work to make sure we achieve the 2% goal in a sustained way,” Williams said Wednesday during a moderated conversation at Queens College in New York. “We need to maintain this restrictive direction of restrictive political policy for some time
The yield on the 10-year Treasury government bond has thus approached the psychological threshold of 5%, this morning we are at 4.95%, for the first time in 16 years.