Inflation, grocery prices, and oil costs are up, and employment, labor and new jobs are down... prepare for August #FedFunds rate hike... +50 bps!?
“But it’s absurd to suggest that ‘any’ #model would call for #fedfunds to be so much lower, and alarming to hear it from the #US #Treasurysecretary.” www.bloomberg.com/opinion/news...

Where Is Bessent Pulling These...
Where Is Bessent Pulling These Rate Models From?

They fly in the face of decades of rules and experience.

Bloomberg
US banks secure $164.8B in Fed's backstop funds, signalling potential stress. Regulators seize Silicon Valley & Signature Banks. Record borrowing surpasses 2008 crisis levels. #BankingStress #FedFunds #RecordBorrowing #Economy #Finance https://www.bloomberg.com/news/articles/2023-03-16/banks-rush-to-backstop-liquidity-borrow-164-8-billion-from-fed?leadSource=uverify%20wall
Banks Borrow $164.8 Billion From Fed in Rush to Backstop Liquidity

Banks borrowed a combined $164.8 billion from two Federal Reserve backstop facilities in the most recent week, a sign of escalated funding strains in the aftermath of Silicon Valley Bank’s failure.

Bloomberg

“The fed funds rate began the decade at a target level of 14 percent in January 1980. By the time officials concluded a conference call on Dec. 5, 1980, they hiked the target range by 2 percentage points to 19-20 percent, its highest ever.”

https://www.bankrate.com/banking/federal-reserve/history-of-federal-funds-rate/

#CarterAdministration #interestrates #fedfunds #inflation #unemployment #economy #bankrate

Fed's Interest Rate History: The Fed Funds Rate Since 1981 | Bankrate

The federal funds rate, a key borrowing benchmark set by the Federal Reserve, is now back to levels not seen since 2007.

Bankrate