The rate on 13-week Treasury bills stands at 2.87%. The Fed funds rate, the rate targeted by the Fed, is sitting at 4.25%. Is the Fed asleep at the wheel?
The Fed is setting interest rates out of line with the markets. Incredible!
The financial markets are in turmoil and the Fed plays by the school book. Too theoretical. The markets need help, not theories. The official interest rate should be much closer to 3% than 4%.
Bottom line. Mr. Bernanke is failing an important test and should be going back to teaching and research!
More on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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