Ayako Yoshioka CFA®, Senior Portfolio Manager at Wealth Enhancement Group was quoted by Bloomberg in “How Smart Is the Meme Stock Crowd? Go, See the Movie.”
Powell was correct to note that r* is not something that's easily detected. It's probably more of a range than it is a specific number. And even trying to define that range is difficult to do with foresight versus hindsight. I think they understand the lagged effects, and they are in the wait-and-see moment. We are starting to see credit deterioration. Delinquencies are turning up. Loan losses are increasing. They are aware of all these things. It's prudent to go at a much slower rate. They don't want to break anything.
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