NVI Technical College Information

Economic Feasibility

It ’ s certainly too early to completely declare victory.

Demand for capital for investment (including significant government

and private outlays on climate change) keeps the 10-year rate from

But — absent another shock like the Russian invasion of Ukraine —

falling, and it reaches its long-run value of around 5% by 2025.

inflation appears to be at manageable levels.

This outcome is consistent with the historical relationship of these

The Deloitte forecast continues to assume that the current inflation

rates under moderate inflation: Should inflation continue to be high,

is “ transitory ” in the sense that it will dissipate over time. Our

the spread between the 10-year note and the Fed funds rate could

A

baseline forecast shows CPI inflation falling to below 3% by late

continue to rise (as investors account for expected inflation in the

2024. We remain optimistic that today ’ s households and businesses

later years of the note ’ s period). Investors should watch out for the

will likely avoid the unpleasant experiences of long inflation and

possibility of higher interest rates — although by the standards of the

painful disinflation that their predecessors experienced during 1970 –

1970s and 1980s, these rates are still quite low.

1985.

Prices

Inflation is closer to the Fed ’ s target than you might realize. The low

inflation reported in June and July reflects a decline in the

underlying trend, with some estimates of trend inflation now below

3%. The year-over-year inflation rates often cited in the press are

higher, but the period they cover includes a lot of “ oldnews. ”

Source: Deloitte

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