Long-Term Interest Rates Suggest Low Inflation?
Baa Corporate 30-year Bond Yields, 1962-2009:
Prime rate, 1955-2009:
But the charts above that other long-term rates (30-year Treasury bond, 30-year AAA corporates and 30-year Baa corporates) are historically low, as well as the prime rate being historically low, and these low rates wouldn't necessarily have anything to do with Fed purchases.
Question: How could all of these long-term rates be so low if there were inflationary pressures building up in the economy, which would lead to higher expected future inflation, and higher nominal long-term interest rates, and not historically low long-term rates?