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The Fed to the Rescue
Over the course of the Great Moderation, a lot of people forgot the difference between the Fed funds target rate (that's the number—currently 5.25 percent—that is set at Federal Open Markets Committee meetings) and the actual Fed funds rate (the actual, real, interest rate).
No one forgot about that difference this morning, when the Fed funds rate was standing at 6 percent.
Felix Salmon's full Market Movers blog post on this subject can be found here.
Laura Rich is a co-founder of Recessionwire, which provides news, advice, perspective and humor about the recession and the recovery.
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