Summary:
The World's Central Banks Are Frozen with Fear Tags Money and BanksMoney and Banking1 hour agoRyan McMaken2016 was supposed to be the year that the Federal Reserve "normalized" its policies. As much as two years ago — after years of a near-zero target rate — the Fed was swearing that it would begin to raise rates back to "normal" levels and cut its balance sheet. That never happened. Yes, the Fed has increased its target rate from 0.25 percent to 1 percent over the past 19 months. But if we look at this on context, it would be absurd to declare a target rate of 1 percent as anything other than an easy-money stance. Remember that throughout the 1990s, the Federal Funds rate was usually between five percent and six percent. After December 2008, though, the target rate
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The World's Central Banks Are Frozen with Fear Tags Money and BanksMoney and Banking1 hour agoRyan McMaken2016 was supposed to be the year that the Federal Reserve "normalized" its policies. As much as two years ago — after years of a near-zero target rate — the Fed was swearing that it would begin to raise rates back to "normal" levels and cut its balance sheet. That never happened. Yes, the Fed has increased its target rate from 0.25 percent to 1 percent over the past 19 months. But if we look at this on context, it would be absurd to declare a target rate of 1 percent as anything other than an easy-money stance. Remember that throughout the 1990s, the Federal Funds rate was usually between five percent and six percent. After December 2008, though, the target rate
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Ryan McMaken considers the following as important:
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