Why the Fed Cut Rates at the December FOMC Meeting
Those two facts explain the Fed’s decision to cut the target Federal Funds rate by 25 basis points to a range of 3 1/2 to 3 3/4 percent. Continue Reading →
Tag Archives: fomc
I Was Wrong About ZIRP
Not, mind you, because the Fed will raise interest rates any time soon. No, the geniuses at the Federal Open Market Committee and the Board of Governors seem to be leaning in a different direction: NIRP. … Better get used to seeing those initials. They stand for negative-interest-rate policy. That’s right. The Fed thinks they can drive nominal short-term interest rates below zero. Continue Reading →
QE2
The Fed has repeatedly stated that their concern is deflation. They are deliberately trying to create inflation. Continue Reading →