Monday’s rate is just under 51bps, the highest since July 2009.
Slowly but surely, the markets are going to force the Fed's hand, much sooner than the Fed wants to act on raising ratesor pumping more funds into the system. As of Friday, the effective Fed funds rate was 0.21%, just 4 basis points from the top end of the Fed's target level. When the rate breaks through, and it eventually will, will the Fed raise rates or add more funds to the system to stop the climb? This is the big question. And whatever the answer, it means more volatility for the economy and markets. Buckle your seat belts.
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