McCulley: Inflation vanquished

|By:, SA News Editor

Back in his chair at Pimco, Paul McCulley declares mission accomplished not just on the war on inflation, but also for the Fed strategy of "opportunistic disinflation," along with what used to be called "pre-emptive tightening."

The man who declared Alan Greenspan had hiked rates for the last time in his career shortly before The Maestro launched a multi-year series of rate hikes, says bond investors should ignore pricing inflation risk into bond yields and the true neutral real interest rte is likely close to 0% over the next few years, implying the Fed Funds rate won't go higher than 2%.

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