The Fed could fall behind the curve as real interest rates continue to rise.=
The Fed could fall behind the curve: Sevens Report Analysts Quoted in Investing.com
The Fed may be further behind the curve
“If we excluded housing from Core CPI, yesterday’s Core CPI reading would have increased just 0.1%,” they explained, downplaying fears of a significant inflation resurgence.
Despite this, the inflation data has reduced the likelihood of a 50-basis-point rate cut by the Fed.
The real risk, according to Sevens, is that the Fed could fall behind the curve as real interest rates continue to rise.
“Real interest rates are now putting more pressure on the economy than they have at any point during the Fed’s tightening cycle,” Sevens stated.
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