Marty's Ƀent
Issue #1220: The rate of change of the Federal Fund Rate is unprecedented
I can say for certain that this particular rag has raised more questions than answers in my own mind.
I can say for certain that this particular rag has raised more questions than answers in my own mind.
They cannot, mathematically, use interest rate targeting to combat inflation effectively.
This isn't good for a global economy on the bike. The continued success of our financial system depends heavily on constant growth.
The Fed feels compelled to intervene within hours to a market hiccup and continue that accommodation into a second day. Essentially conducting QE without officially conducting QE.
A project that was born out of the ashes of the last major financial crisis is now turning the corner to complete a full cycle of the Fed loosening and tightening their policies between crises.
Stay vigilant out there. Uncle Marty thinks things are only just starting to heat up on the global stage.
The warning bells seem to be going off on the back of the raging trade war as certain Fed governors have come out posturing that rate cuts may be on the horizon. The question this time around is, how low can we go?
