Comment by hogFeast
6 years ago
It is a matter of fact because interest rates are determined by the Fed...who say: we look at expected growth. Don't make things more difficult than they need to be (you can also see this quantitatively).
6 years ago
It is a matter of fact because interest rates are determined by the Fed...who say: we look at expected growth. Don't make things more difficult than they need to be (you can also see this quantitatively).
Short rates are determined by the Fed. And they target inflation, not growth. The Fed has relatively little control of the yield curve at long maturities.