What's the Fed funds rate?
Friday, October 03, 2008
Those thinking that a rate cut from the Federal Reserve may soon follow the passage of the $700 billion bailout bill would already be a couple weeks behind "events on the ground".
While the rate cut has not yet been formalized, an event that will have at least a temporary psychological impact on financial markets, the mechanics of a lower Fed funds rate have been in place since the middle of last month.







![[Most Recent Quotes from www.kitco.com]](http://kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent USD from www.kitco.com]](http://www.weblinks247.com/indexes/idx24_usd_en_2.gif)

2 comments:
Note that 3-month money is even more suppressed, yield-wise.
This is probably because of capital flight dynamics from commercial paper.
And longer durations were yielding practically nothing as well. I guess the difference is that the Fed doesn't control these other rates like it's supposed to control the Fed funds rate.
Post a Comment