Biased Expectations Theory

This is a theory which says that the future value of interest rates is always biased, because it’s based on expectations, sentiments, and what people expect from the market today, instead of being based on systemic factors, which is what really should be influencing them.

In other words, some people felt indignant enough about future interest rates not being affected by the right thing...that someone somewhere felt compelled to create this theory. What can we say? We’re an emotional species.