BlackRock's Hildebrand Says Fed Implying Higher Neutral Rates

BlackRock Vice Chairman Philipp Hildebrand tells Bloomberg there’s an implicit recognition of higher neutral rates in US Federal Reserve policy as inflation remains sticky on persistent supply constraints. He also said the decision by the Swiss National Bank to cut its key interest rate by 25 basis points is a courageous step but “perfectly justifiable” when looking at the inflation forecast. He spoke to Bloomberg's Francine Lacqua on The Pulse.

[@spacecoastaesthetics6990]

Wow! I got to see an Evil Blackrock person.

[@prolific1518]

Bingo. Most seem to have missed the Political Reserve trading lower unemployment for a higher neutral rate. Only way to get back to 2% is with a recession and the establishment won't allow it. This is the first person I've seen actually highlight this.

[@1ntrcnnctr608]

nobody in the world can prove that 2% ever really made sense (was no real solution to begin with n the problem starts already way before that) - old rules cant work forever in a changing environment or zeitgeist

[@001sander2]

Switzerland uses price controls, it's long past due we dispell the myth that they can't be used beneficially.

[@imtryinghere1]

Switzerland is tiny. It's not possible to extrapolate their economics to larger, more diverse economies

[@michael2275]

Moronic

[@InnocentCardGame-sz2be]

Every nation, economy, ecosystem, is unique to all the different variables of that economy. Someone pays for price controls. Whether it's the producers, the laborers, or the consumers. Someone always pays.

[@001sander2]

@@InnocentCardGame-sz2be yeah and price controls are a more precise instrument to maintain price stability, so those who are paying are able to afford to do so. And the public infrastructure are taken out of the equation, further ensuring price stability.

[@imtryinghere1]

@@001sander2 this is really delusional socialist thinking. price controls create unnatural ceilings where supply and demand clears, that drives down supply and builds up market imbalances over time. it creates the illusion of short term stability at the expense of a potential major market correction for the real clearing price later. what you are arguing is like straight out of the communist playbook, that's a discarded economic premise and proven not to work.