Real market short term interest rates are now up 92.5 bp since the Fed’s last rate setting circus in June. If the Fed only goes 0.75 it will prove yet again that they are not serious people.
The Fed is tight in terms of Q of M, and the market has shown it, but the Fed maintains this rate setting sideshow for some godforsaken reason that I can’t fathom. History shows that inflation doesn’t cool until rates are punitively positive. Right now they remain massively negative.
