Stuck in Glue 

The Fed is stuck in glue. It did not change interest rates. Nor did it change much of its announcement as the WSJ Fed Statement Tracker shows.  

No Dissents 

Fed Statement Tracker Changes Nov 5 2020 dissents

Sarcastic News of the Day

Effective Lower Bound

RECOMMENDED ARTICLES

For discussion of the Effective Lower Bound (the point at which lowering rates further is counterproductive), please see:

  1. June 4, 2019: Powell Ready to Cut Rates to "Effective Lower Bound" via "Conventional" Policy
  2. September 25 2019: In Search of the Effective Lower Bound

Two Inflationary Tail Risks For US Investors

The Fed is stuck and will not lower rates below zero nor can it raise them without killing housing.

For discussion please see Two Inflationary Tail Risks For US Investors

Meanwhile, the bubbles keep getting bigger increasing the odds of a deflationary collapse.

Mish