Higher for longer? Analyst interest rate forecasts continue to extend.
- Inflation has come down and the US economy continues to grow. Chairman Powell used the Jackson Hole symposium to reaffirm the Fed’s 2% inflation target and suggested that rates may need to be held near current levels for longer to account for the lags in monetary policy transmission. – Carlyle
- The market reaction of Fitch’s downgrade of US Treasury debt was short-lived as the rating agency lowered the US long-term rating one rung from AAA to AA+ citing its growing debt burden and an “erosion of governance” including on fiscal matters. As the Fed dramatically lifted interest rates to the highest level in 22 years, interest payments at the Treasury have increased. – Financial Times
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