To what degree can the Fed control interest rates?
Moderator: Global Moderator
To what degree can the Fed control interest rates?
What do you think folks??... just trying to start a discussion on the fed's hold on rates.
"Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds."
- Thomas Paine
- Thomas Paine
Re: To what degree can the Fed control interest rates?
Short term interest rates, yes.
Long term interest rates, no.
Ben Bernanke wrote on this topic earlier in his career and suggested that a central bank could experiment with attempts to control the longer end of the yield curve, but even he wasn't certain it could be done by a central bank.
Long term interest rates, no.
Ben Bernanke wrote on this topic earlier in his career and suggested that a central bank could experiment with attempts to control the longer end of the yield curve, but even he wasn't certain it could be done by a central bank.
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
A: “Not unless round is funny.”
Re: To what degree can the Fed control interest rates?
MT,
To what degree can the fed keep ST rates below inflation, in your opinion?
To what degree can the fed keep ST rates below inflation, in your opinion?
"Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds."
- Thomas Paine
- Thomas Paine
Re: To what degree can the Fed control interest rates?
It depends on how much they want to spend.moda0306 wrote: MT,
To what degree can the fed keep ST rates below inflation, in your opinion?
It appears they are doing it as we speak, since most would agree that there is more than 0% inflation right now.
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
A: “Not unless round is funny.”