The problem is that the interest rate hikes aren't fighting inflation because the interest rate hikes aren't even happening. Powell raised the Federal Funds rate in November and December of last year, and Treasury yields DROPPED. They rose briefly after the February 1 hike only to crater over the past two weeks, while the market reaction…
The problem is that the interest rate hikes aren't fighting inflation because the interest rate hikes aren't even happening.
Powell raised the Federal Funds rate in November and December of last year, and Treasury yields DROPPED. They rose briefly after the February 1 hike only to crater over the past two weeks, while the market reaction to yesterday's federal funds hike was to push yields down even further.
How can we have interest rate increases when Treasury yields are lower now than at any time since last September?
The problem is that the interest rate hikes aren't fighting inflation because the interest rate hikes aren't even happening.
Powell raised the Federal Funds rate in November and December of last year, and Treasury yields DROPPED. They rose briefly after the February 1 hike only to crater over the past two weeks, while the market reaction to yesterday's federal funds hike was to push yields down even further.
How can we have interest rate increases when Treasury yields are lower now than at any time since last September?