The Federal Reserve now looks set to raise rates in
December, partially based on expectation that inflation is set to finally rise
to its 2 percent target. There's only one potential problem.
There's actually a way that markets can see where investors
think inflation will go. And they do not exactly see eye to eye with America's
central bank.
Over the next five years, annual inflation is expected to
run at less than 1.3 percent. Even over the next ten, investors are looking for
no more than 1.6 percent per year.
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