This is a syndicated repost courtesy of Online Course Notes For Financial Markets and Banking. To view original, click here. Reposted with permission.
On the one hand, The Federal Reserve has been raising its target rate (upper bound) in recent years, from 25 basis points (Dec ’15) to 200 basis points today.
But if we subtract inflation (CPI YoY) from the target rate, we see that The Fed is still practicing a NEGATIVE REAL RATE Policy (NIRP).
Liquidity moves markets!Click here to learn how you can follow the money.
Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.