The era of low interest rates and low inflation that persisted for nearly 15 years following the Great Recession has concluded, giving way to a new economic landscape characterized by higher prices and higher rates. This shift marks a significant departure from the post-recession stability that defined the previous decade and a half.
According to the report, the current environment is defined by "sticky" inflation and faster economic growth. These factors have necessitated a change in monetary policy, moving away from the accommodative stance that was prevalent during the low-inflation period.
The transition signals that the economic conditions which allowed for sustained low borrowing costs are no longer applicable. Instead, the focus has shifted to managing persistent price increases while the economy expands at a quicker pace.
This new world of higher rates and durable inflation represents a fundamental change in the global economic structure, ending the long-standing trend of cheap credit and stable prices that followed the financial crisis.
<small>Source: PBS NewsHour — read the original story there.</small>
