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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 677 |
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If the current trends continue and economic developments push towards monetary policy neutrality, then "normal" interest rates seems more likely. The low interest rate have helped the economy, but in moving towards a more neutral setting, some of the capital gains on debt will be reversed and create exposure...
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As the federal fund rates are increased to a more neutral or normal number, intervention is less of a requirement. Policy tightening has created adjustments in financial market pricing, market interest rate increases have slowed the pace of mortgage refinancing, all in the act of becoming more neutral...
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