When we look inflation expectations and of short-term interest rate (of key central bank rates), we can see that the financial markets are anticipating a fairly sharp slowdown in the economy. The Fed Funds interest rate (the Federal Reserve’s key interest rate) is also expected to drop from 5.25% today to 3.5% at the end of 2024; it is anticipated that the ECB repo rate (its key interest rate) rises to 4.25% then drops to 3.25% at the end of 2024.
As for expected inflation measured on the financial markets, it is lower…
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dmp
2023-07-01 07:00:00
#United #States #euro #zone #risk #entering #recession
