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The bond market controls rates, but the fed sets the floor. For example, if you believe we would had decades of a near zero federal funds rate, you might be wi
by ac29 2y ago
The bond market controls rates, but the fed sets the floor.
For example, if you believe we would had decades of a near zero federal funds rate, you might be willing to accept a 2% yield on a 30 year bond. But if you thought the long term federal funds rate was going to be 2%, you might want 4% or more on the long bond.
- dave333 2y agoThe fed follows the market rates - their control is an illusion. https://www.elliottwave.com/articles/fed-rate-cut-interest-rates-lead-and-the-fed-follows/ https://www.elliottwave.com/articles/fed-rate-cut-interest-r...