Like everyone else, I am worried about the change in inflation, the rate of Treasury Securities, and the rate of wage growth. This creates practical problems for me when discounting future lost earning capacity to present value in case of personal injury and medical malpractice matters. It almost seems like you have to use a negative discount rate, especially if the work-life expectancy is short.
The Federal Reserve Bank of St. Louis calmed my anxiety a bit when I looked at the 5-year Break-Even Inflation rate which seems to be a little below 3%. Still high but not that crazy. Maybe it peaked. It’s probably not unreasonable to expect that wage growth will stay manageable. #personalinjury #medicalmalpractice #economics #rehabilitation