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Incidentally, if there is a crash, how is the Fed going to respond, since interest rates are practically as low as they can go? Will we see negative interest ra
by yasp 8y ago
Incidentally, if there is a crash, how is the Fed going to respond, since interest rates are practically as low as they can go? Will we see negative interest rates and asset purchases of equities and perhaps even real estate?
- maxerickson 8y agoRates are up a bit from the bottom: https://fred.stlouisfed.org/series/FEDFUNDS https://fred.stlouisfed.org/series/FEDFUNDS I guess they still have some trillions of various paper though. Like: https://fred.stlouisfed.org/series/MBS10Y https://fred.stlouisfed.org/series/MBS10Y or https://fred.stlouisfed.org/series/TREAST https://fred.stlouisfed.org/series/TREAST
- astura 8y agoRates have been rising for the last two years.
- skh 8y agoThe Fed has been raising rates and is expected to raise rates in each of the next two quarters. They hope they can raise rates high enough, fast enough to give them leverage for when there is a crash. Of course they don’t want to raise rates too fast else the rate raising will be the cause of the next crash.