https://betterdwelling.com/us-federal-reserve-makes-biggest-rate-hike-in-20-years-lending-conditions-to-tighten/ Canada’s Fastest Growing Real Estate News Source Sun, 08 May 2022 01:16:35 +0000 hourly 1 https://betterdwelling.com/us-federal-reserve-makes-biggest-rate-hike-in-20-years-lending-conditions-to-tighten/#comment-82993 Thu, 05 May 2022 17:18:17 +0000 https://betterdwelling.com/?p=20484#comment-82993 There’s no way the neutral rate is between 2.5% and 2.75% in the modern economy. Maybe at steady state, but with inflation running 2X of that, I have to imagine interest rates would have to be much higher in order to shock inflation down to within the region that 2.5% becomes a sufficient deterrent for inflation-accelerating borrowing.

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