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> The Fed does, of course, set the benchmark nominal short-term interest rate....The Fed’s ability to affect real rates of return, especially longer-term real r
by vitriol83 12y ago
> The Fed does, of course, set the benchmark nominal short-term interest rate....The Fed’s ability to affect real rates of return, especially longer-term real rates, is transitory and limited.
this would be a plausible argument if the us treasury weren't the biggest buyer of long-term government debt.
- o_nate 12y agoThe Fed stopped buying Treasuries in November of last year and since that time long-term rates (both real and nominal) have fallen.