2024-05-23 00:20:00 ET
Summary
- Two driving forces are now simultaneously pushing in the direction of higher long-term real interest rates.
- While investors and commentators often tend to conflate the two, I think it is useful instead to distinguish them clearly. They are rising investment, and persistently large fiscal deficits.
- The United States has experienced a persistent loosening of fiscal policy that goes well beyond the country’s public investment efforts.
By Sonal Desai, Ph.D., Chief Investment Officer, Franklin Templeton Fixed Income ...
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On My Mind: The Twin Roots Of Rising Rates