MarketWatch analysis: The Fed faces a decision on whether the two-decade era of low interest rates is over
Global bond yields are touching multiyear highs, and as the Federal Reserve meets this week to set interest-rate policy, officials will have to discuss whether this is a repricing back to pre-2007/08 financial crisis levels, or a structural turn in the global economy requiring higher rates for years to come. The analysis suggests high rates could be due to temporary supply-chain frictions and energy insecurity, but also notes real interest rates have risen and may remain higher due to increased capital demands from the AI boom and potential productivity gains, indicating a more structural shift.
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Source:MarketWatch · Source Link
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