3 ms·

Real interest rates (nominal interest rate minus inflation rate) is still negative.

• bagacrap 4y ago
  No? Overnight rate is 5% and last month/3 month inflation is running under 5% saar no matter which measure you use.
  • deleted 4y ago
    [deleted]
  • adam_arthur 4y ago
    Core CPI is above 5% by many measures (annualized using recent months numbers). Median CPI, which removes outliers, was 0.6% MoM last month. https://www.clevelandfed.org/indicators-and-data/median-cpi https://www.clevelandfed.org/indicators-and-data/median-cpi That being said, I don't think the effect of the funds rate will be felt linearly like most academic models assume, and don't think funds rate has to be above CPI to be restrictive.