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To: Sun Tzu who wrote (2143)8/28/2021 4:25:58 PM
From: ajtj99  Read Replies (3) | Respond to of 10511
 
I'm just addressing the tapering process. Of course real rates are going to continue to be negative and the Fed Funds Rate will have difficulty rising above 1% for the reasons you cited.

My point is that the Fed's $120-billion a month buying is causing a huge dislocation in the markets now that the economy has recovered its trend.

If the Fed backs off the pedal and the government backs off of stimulus programs, you take a lot of the tailwinds for inflation away. Without those things and almost no population growth, it's difficult to have an inflationary boom.