10-year real interest rate matches pre-crisis levels, David Andolfatto notes

10-year real interest rate matches pre-crisis levels, David Andolfatto notes
10-year real rate at pre-crisis level

David Andolfatto highlights that the 10-year real interest rate, which adjusts for inflation expectations, has returned to levels last seen before the financial crisis.

He also observes that long-run inflation expectations have shown remarkable stability over the past 20 years.

Andolfatto has previously examined risks in the U.S. banking sector as commercial banks shifted from holding Treasury securities to Federal Reserve reserves, raising concerns for financial stability in his analysis of bank portfolios.

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