Markets

Some like it hot (the economy, that is)

AfricaStudio / Shutterstock
AfricaStudio / Shutterstock

After years of facing intentionally low interest rates, investors may be somewhat surprised to learn that Lockhart's comment above actually reflects the latest thinking out of the Federal Reserve (Fed). That is, the idea of running the U.S. economy "hot" to bring about further gains in employment. Fed Chair Janet Yellen officially kicked off the debate over the merits of such an approach in an October speech to the Boston Fed.

Why is this important to investors?

inverted yield curve
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Is the past prologue?

a "flattening" in bond parlance maximum employment fixed income monthly Jeffrey Rosenberg , Managing Director, is BlackRock's Chief Investment Strategist for Fixed Income, and a regular contributor to The Blog .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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