United States: Interest rate uncertainty: how big an issue?
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An increase in interest rate uncertainty can weigh on the real economy either directly or via its impact on financial markets. This is particularly important during a process of monetary policy normalization.
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Interest rate uncertainty can be assessed in different ways. In this article we look at observed volatility, implied volatility and surveys.
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Survey-based measures suggest that uncertainty about the federal funds rate has increased as of late.
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