Dario Perkins: Hiking is key to stabilizing long-term yields and credibility

Dario Perkins: Hiking is key to stabilizing long-term yields and credibility
Hiking rates seen as credibility test

Dario Perkins argues that hiking rates is an obvious choice to stabilize long-term yields and reinforce credibility. He suggests that if no hike occurs, it would prompt important questions about the underlying reasons.

Perkins previously noted that seasonality in core CPI may affect the outlook for a September rate hike. He has also questioned how minor inflation differences have prompted strong Fed responses. These observations add context to his current stance on rate decisions and central bank credibility.

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