Central bankers set short term interest rates through the FOMC to control inflation, which erodes prices over time. High inflation increases inflation breakeven rates, which is the difference between conventional bond yields and inflation-indexed bond yields. The document discusses central bank interest rates, inflation breakeven rates, and how they impact prices.
Central bankers set short term interest rates through the FOMC to control inflation, which erodes prices over time. High inflation increases inflation breakeven rates, which is the difference between conventional bond yields and inflation-indexed bond yields. The document discusses central bank interest rates, inflation breakeven rates, and how they impact prices.
Central bankers set short term interest rates through the FOMC to control inflation, which erodes prices over time. High inflation increases inflation breakeven rates, which is the difference between conventional bond yields and inflation-indexed bond yields. The document discusses central bank interest rates, inflation breakeven rates, and how they impact prices.