Friday, October 24, 2008

Despite 1.5% Target, Fed Fund Rate Is Below 1%

Since the FOMC cut its target Fed Funds rate to 1.50% two weeks ago on October 10, the average actual Fed Funds rate has actually been below 1% (.92%), and has been below .80% over the last week.


At 10/24/2008 2:02 PM, Anonymous Anonymous said...

Because they're NOT targeting the Fed funds rate! That should be obvious. The 3 month bill keeps hitting zero.

They're playing the quantitative easing game that Japan did in the 90s.

This is how well that worked. See Mish's full post

Btw his blog is in the top 5 most read economics/finance blogs on the web.


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