News for hackers. Stuff that matters.

A comment on U.S. Treasury Yield Curve Inverts for First Time Since 2007. Parent comment

Re:U.S. Treasury Yield Curve Inverts for First Time Since 2007 by buttcoinslol on Saturday March 23, 2019 @01:23AM (#19469185)
Because we have 9 rate cuts before 0% interest, the ECB is at negative yield and so the BoJ?

The fed funds rate was around 4.5% in July of 2007 before the shit hit the fan. We need room to cut interest rates to spur growth when the next recession hits. 2.25% isn't a very big margin.

[ Parent | on HN ]
Re:U.S. Treasury Yield Curve Inverts for First Time Since 2007 by JamesBarney on Saturday March 23, 2019 @01:17PM (#19471310)
Because of the aging of the population and the consolidation of wealth the natural interest rate have fallen quite a bit. And you're right I think that's a big risk for the next recession.

But the only way to a higher nominal interest rate while keeping the same real rate is too raise the inflation rate to 3 or 4%.

[ Parent | on HN ]