The Fed is yet to catch up to the Taylor Rule estimateSubmitted by Surlax t3_11e65gn in wallstreetbets
MrSamsonite t1_jae60uc wrote
Reply to comment by furrypurpledinosaur in The Fed is yet to catch up to the Taylor Rule estimate by Surlax
Sure, but when it overshot the downside, it immediately corrected itself. If your logic is correct, wouldn't we have expected the Taylor Rule to shoot back down already?
Obviously I don't expect a 10% rate, but those two lines converging around 7% seems reasonable and horrifying.
furrypurpledinosaur t1_jaeipuk wrote
Not yet, I think inflation is still high but the amount of disinflation already in the pipeline is eventually going to show up in numbers and once it starts going down it goes down fast. That's only my opinion obviously, I don't know what will end up happening.
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