Harvard Professor Rogoff Says Fed Won't Have It Easy Keeping Inflation At 2% In 'Changed World'
Portfolio Pulse from Bhavik Nair
Former IMF chief economist and Harvard professor Kenneth Rogoff believes the Federal Reserve will struggle to limit inflation at 2% in the current economic climate. He also expects interest rates and the yield on the 10-year Treasury note to rise, averaging above 4% for the rest of the decade.
June 07, 2023 | 7:39 am
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NEGATIVE IMPACT
The iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) lost 1.75% in the last month. Higher interest rates and inflation expectations may impact the ETF's performance.
Kenneth Rogoff's prediction of higher interest rates and inflation may lead to increased yields on Treasury bonds, which could negatively impact the performance of the iShares 7-10 Year Treasury Bond ETF (IEF). As yields rise, bond prices fall, leading to a decline in the value of the ETF.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50