United States: Interest rate uncertainty: how big an issue?

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.
Interest rate uncertainty can be assessed in different ways. In this article we look at observed volatility, implied volatility and surveys.
Survey-based measures suggest that uncertainty about the federal funds rate has increased as of late.

BNP Paribas Team BNP Paribas

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BNP Paribas Team

BNP Paribas

BNP Paribas Economic Research Department is a worldwide function, part of Corporate and Investment Banking, at the service of both the Bank and its customers.

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