Latest / The Federal Reserve Podcast with Fexingo: Interest Rates, FOMC Meetings, and Monetary Policy
Why the Fed Tracks the Real Rate Through Ten-Year Breakevens
In Federal Reserve Podcast episode 147, Lucas and Luna examine why the Fed is zeroing in on the real interest rate derived from ten-year breakevens. With the ten-year breakeven ticking up to 2.28 percent while core PCE climbs to 130.3, the hosts decode what this signal means for Warsh's Fed amid a divided committee and slowing GDP. They break down how the real rate influences borrowing, investment, and the neutral rate debate, and why a rising real rate could tighten financial conditions more than a quarter-point hike. Using the latest data and the Fed's own commentary, they explain…
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