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How Should the Continued Tightening of the Fed Affect Decision-making?

10 mins.
28 JANUARY, 2022
análisis macroeconómico
ANALYSTS:
Leopoldo Torralba
Ignacio De la Torre
CATEGORIES:
Monetary Policy US Europe AER Global AER Personal
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Given the clear message of further monetary tightening issued by the Fed at its recent meeting, we try to clarify in this two-paged note the ways companies, investors, and even individuals should approach their decisions in order to rationally and calmly face the continuous volatility in the economic-health environment, inflation, and, in the case at hand, the expected future US and European interest rates, both short and long term.
What can be inferred from the Fed's more hawkish note at its latest monetary-policy meeting?
Where might long and short rates be in the coming years in both Europe and the US?
How might a complex and ever-changing perspective on future interest rates factor into decision-making?

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