Jerome Powell says “rates will be higher”. I believe him. I don’t think most others do. Investors, especially, need to pay attention.
FED POLICY
I have read the text of Powell’s interview. His comments are consistent with remarks he has made over the past two years during the Fed’s current campaign to see interest rates returned to a higher, more historically normal level…
“I think instinctively – I can’t prove this, we’re going to learn about this empirically – but it seems to me that the neutral rate is probably higher than it was during the intra-crisis period. And so, rates will be higher.”