FBRT - How The Federal Reserve Is Redefining Success

2024-02-13 08:55:14 ET

Summary

• The Federal Reserve reimagined their goals to better match their chosen interest rate policy.
• Higher interest rates do not lead to a decrease in government spending. It would be cool if higher rates reduced deficits, but they don't.
• The free market is pretty good at responding to higher prices. It also responds to lower prices.

Just a quick update today.

There were two speeches by Federal Reserve members today. The bond market is barely changed.

No big deal. What was more interesting was some commentary from last week. Bloomberg reported on two Federal Reserve members wanting a broader reduction in inflation ....

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