Re:Federal Reserve raises rates by 0.75%
by beezle on Thursday June 16, 2022 @08:29AM
(#31765246)
In an ideal world the Fed would not "set" any rates - it would be up to the market. However, the risk is there could be more volatility on the short end without the Fed 'anchor'. A compromise might be to greatly increase the target range from 25bp to funds target rate +/- 200 bp, lower bound 0.00 thus making a bounded floating rate. That might also require a shift in how lenders set rates on very short term debt to some type of period average, ie 3 or 6m average rate.
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