DiscoverNotes on the Week AheadInterest Rates, Inflation and the Uncertainty Tax
Interest Rates, Inflation and the Uncertainty Tax

Interest Rates, Inflation and the Uncertainty Tax

Update: 2025-01-13
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In football, it’s always better, at the snap of the ball to disguise your intentions. Are you going to pass or run the ball? Is it a zone defense or man-to-man?  In business or in military maneuvers the same rule applies – keep them guessing.


However, in macro-economic management, it is better to make your plans clear.  That way businesses can feel more confident in hiring and investing, as can consumers when deciding to buy.  It is one of the reasons the Federal Reserve publishes a quarterly Summary of Economic Projections (or SEP) and so frequently repeats its determination to achieve 2% inflation. 

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Interest Rates, Inflation and the Uncertainty Tax

Interest Rates, Inflation and the Uncertainty Tax

Dr. David Kelly