Fed Hubris: Housing Prices Show The Fed Is Making The Same Inflation Mistake
The BLS says the CPI is up only 1.4% from a year ago. However, the CS-CPI has been running between 2% and 3% for the past three years and most of the past seven years. By this measure, the Fed has already achieved its goal. Yet, the Fed is holding rates near zero and has pledged to remain that way. We can calculate " Real Interest Rates Thanks to the Fed slashing interest rates to near-zero, real interest rates are -3.45% as measured by CS-CPI but "only" -1.31% as measured by the CPI. Third Great Fed Mistake With the real interest rate at -3.45% is it any wonder speculation in stocks, ju...
Source: zerohedge.com
