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SIMPLYBIZ INVESTMENT SERVICES
FIGURE 2 : US CPI EXCLUDING FOOD AND ENERGY
Source : Bloomberg , as at 16 August 2024
• Short-term interest rates are set to decline ( Figure 3 )
• Bond yields are reflecting all of this , and the cost of capital is falling . Though the steepening of the yield curve suggests we are not set to go back to the low level of bond yields experienced in the post-GFC period .
FIGURE 3 : FEDERAL FUNDS TARGET RATE
Source : Bloomberg , as at 16 August 2024