How Inflation, Monetary Tightening, and Volatility Are Impacting PE and VC
The presence of inflation that is uncomfortably higher than the Fed’s stated policy goal of roughly 2.0% fundamentally alters how the Fed can conduct monetary policy. The rise in short-term interest rates, and more importantly, the sharp increase in market expectations of further tightening, has been the primary driver of recent market turmoil. The corresponding [...]