This is a little more macro/money than much of the stuff I post here but it seems to be something people miss sometimes. The Federal Reserve drastically lowered rates in response to the unfolding financial crisis in 2008 and later. Those rates remain low today, essentially set between 0.0 and 0.25%. Despite this range the rate is effectively staying at or below 0.1%, but that is not what I am addressing today.

Continue reading The “Real” Fed Funds Rate

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The Wall Street Journal did an analysis of comments by Federal Reserve members and judged the accuracy (article). “Hawks” are thought to be more aggressive anti-inflation policy authorities than “Doves”. I find it interesting that they go so far as to judge a winner in this situation. Long run outcomes are still not known and would be an important part of scoring who was “right”. But there are a few other issues here as well.

Continue reading Dove v. Hawk

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