Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
Why The Fed Funds Rate Matters More Than The 10 Year Yield
With the ten-year Treasury yield hovering near five point two four percent and the S&P 500 flirting with seven thousand eight hundred, investors are fixated on long-end rates. But Lucas and Luna argue that the real signal is in the short end. They dissect the Federal Funds effective rate sitting at three point seven five percent and how it interacts with the Interest on Reserve Balances to create a floor for borrowing costs. Using the latest September labor data showing job openings falling to seven thousand thirty nine thousand and unemployment ticking up to four point two percent, they…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.