The Fed’s NIRP Policy (Real Fed Funds Rate Remains Negative)

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via confoundedinterest:

On the one hand, The Federal Reserve has been raising its target rate (upper bound) in recent years, from 25 basis points (Dec ’15) to 200 basis points today.

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But if we subtract inflation (CPI YoY) from the target rate, we see that The Fed is still practicing a NEGATIVE REAL RATE Policy (NIRP).

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