The Fed Has Been Cutting Real Rates

That’s a provocative title, but I’ll stand by it. If we look at the real Fed funds rate — the overnight rate adjusted for core inflation — then the Federal Reserve has been slightly lowering interest rates not increasing them.

The Fed’s one modest hike has been completely swallowed up by the recent rise in core inflation.

Posted by on March 16th, 2016 at 11:06 am


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