The Fed and other central banks never “raise rates” per se, they only ever *suppress* rates. So what is typically seen as “raising the rate” is only a decrease in the amount that they are supp...
The issue is what one means by "rates". The fed only controls the Federal Funds Rate, which they absolutely raise or lower. Because they own that rate and market.
If one means "bond rates", which supposedly the FFR influences (and seems like it has in the past, but not to the degree everyone thinks), then...maybe?
If one means "lending rates", which could be mortgages to car loans to corporate loans, then...maybe? Even less so? As this is based on bond rates (2/10 year), which have a questionable linkage to the FFR.
I don't think the FFR has any relevancy on anything anymore.
They can raise or lower the FFR and I think "rates" all they want. The bond market is not really listening a whole lot. Just directionally so, and only for a small amount of time.
The Fed is losing control in real-time.
The only real trick they have is the money printer, which has already been kicked on for Japan and other behind-the-curtain crises.
At this point, I question how relevant the Fed is beyond their ability to influence via narrative. And it seems more and more people are seeing through that narrative every day. Even Wall St, as obtuse and narrative-driven as it is.
If one means "bond rates", which supposedly the FFR influences (and seems like it has in the past, but not to the degree everyone thinks), then...maybe?
If one means "lending rates", which could be mortgages to car loans to corporate loans, then...maybe? Even less so? As this is based on bond rates (2/10 year), which have a questionable linkage to the FFR.
I don't think the FFR has any relevancy on anything anymore.
They can raise or lower the FFR and I think "rates" all they want. The bond market is not really listening a whole lot. Just directionally so, and only for a small amount of time.
The Fed is losing control in real-time.
The only real trick they have is the money printer, which has already been kicked on for Japan and other behind-the-curtain crises.
At this point, I question how relevant the Fed is beyond their ability to influence via narrative. And it seems more and more people are seeing through that narrative every day. Even Wall St, as obtuse and narrative-driven as it is.
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