Lyn Alden: Higher rates do not always resolve inflation issues

Lyn Alden: Higher rates do not always resolve inflation issues
Limits of raising rates for inflation

Lyn Alden, who is founder and CEO of Lyn Alden Investment Strategy, argued that the assumption that higher interest rates always solve inflation may not hold true.

Alden suggested that in some situations, certain causes of inflation are not addressed by simply raising rates.

Alden previously noted that the bond market’s long end remains under control, with a flat yield curve and high yields tied to inflation here. She also described recent bearish action in bonds as expected and observed no breakage in the curve here. These earlier views provide context for her latest comments on inflation and interest rates.

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