The Fed ratified the market’s judgment on rates today, as it always does. The Fed does not set rates. It simply follows the market. This comes as no surprise to readers of this report. Fed Funds have traded below 0.25% since December 4. Since the Fed does not want to appear irrelevant, it acts as though this was part of the plan all along. It wasn’t.
There will be some very real repercussions to this move however, since there is one rate that is directly determined by the Fed target. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.
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