Thursday, December 31, 2015

A Preliminary Fed Report Card

A grade of F would seem generous.  Aside from the funds rate and the repo rate, for which the Fed has become a perfectly elastic demander and supplier, all other market rates in the American economy are lower today than they were before the "Fed raised rates."

What does "raising rates" mean these days?  Obviously it doesn't mean raising rates determined in the free market, as those rates were now lower since the Fed took its actions two weeks ago.

So, an F would seem generous.  Maybe an I for irrelevant would be more appropriate.

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