4 ms·
Rates can't be set by the Fed arbitrary, the market will always bring them back to earth.
by bioemerl 4y ago
Rates can't be set by the Fed arbitrary, the market will always bring them back to earth.
- whimsicalism 4y agoShort-term rates can be effectively by set by the Fed arbitrarily. It's only long-term that the real rates are independent of the Fed.
- bioemerl 4y agoI am fairly confident that the rate increases we've seen over the last couple of months are going to be permanent, and we're going to keep seeing inflation for quite a long time. Now I can't prove this for sure, we will see if I'm wrong or not, but I think this is definitely capital shortage territory, not fed screwing with the rate territory.