Latest / The Federal Reserve Podcast with Fexingo: Interest Rates, FOMC Meetings, and Monetary Policy
Why the Fed Is Obsessed With the Real Rate
Lucas and Luna unpack the Federal Reserve's subtle pivot toward the real interest rate — the nominal rate minus inflation expectations — and why it matters right now. With the effective fed funds rate at 3.63 percent and ten-year breakevens sliding to 2.27 percent, the real rate has quietly climbed to levels not seen since before the 2008 crisis. The hosts explain how this shift is shaping the Fed's reaction function under Chair Kevin Warsh, why a divided FOMC is reading the same data differently, and what a rising real rate means for equities, housing, and the labor market. They…
The skinny
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