3 ms·

Going from 0-1% to 4-5% is massive I agree on that. But in the absolute, it’s still tiny and even a negative real interest rate. The other stuff about the fed

by whb07 5y ago

Going from 0-1% to 4-5% is massive I agree on that. But in the absolute, it’s still tiny and even a negative real interest rate. The other stuff about the fed activities not influencing treasury rates is about as true as inflation being 2% avg for the last couple years.

dragonwriter 5y ago
> But in the absolute, it’s still tiny No, it's not; its from the global minimum to, while not the historic global maximum, a level clear on the other side of average. > The other stuff about the fed activities not influencing treasury rates No one said that. The relation historically is not such that going to a 4-5% fed funds target would double or triple debt service costs.