The red line is the difference in the spread we discussed above. Notice to the far right, in June 2022, the real rate of interest was -8.3%. In other words, policy was so weak, it had no effect on prices. At the time, the effective fed funds rate was close to zero while inflation growth peaked at 9.1%. So, shortly thereafter, the Fed started a series of aggressive rate hikes to get price growth back under control.
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Scott Garliss
https://www.coindesk.com/opinion/2024/08/26/the-feds-rate-cut-cushion-is-good-news-for-crypto/?utm_medium=referral&utm_source=rss&utm_campaign=headlines
2024-08-26 14:40:18
