To be sure, the Federal Open Market Committee's current judgment is that its accommodative posture is appropriate to foster sustainable expansion of economic activity. But the evidence indicates clearly that such a policy stance will not be compatible indefinitely with price stability and sustainable growth; the real federal funds rate will eventually need to rise toward a more neutral level.
Turning to the euro area, and given that the correlation between US Treasuries (USTs) and German Bunds has remained high (70%), the latter should follow USTs, but only drift 8  slightly higher from their low levels given modest inflation expectations, the euro area’s weak economic momentum and enhanced political risks. Thank you very much for your attention! 9