February 8, 2022

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

25 Or 50 Basis Points

Please click here for a chart of the 10-year real interest rate.

Note the following:

• The chart is based on a model by the Federal Reserve Bank of Cleveland.  The model estimates the expected rate of inflation over the next 30 years along with the inflation risk premium, the real risk premium, and the real interest rate.
• The yield on 10-year treasury notes have moved to 1.945%.
• Inflation is running over 7% at this time.
• The interpretation from the chart is that over 30 years inflation will be much lower and overall interest rates will remain lower.