So the Fed could, in principle, decide to raise the federal funds rate even before the unemployment rate reaches 6.5 .

With unemployment now at 7.6 and falling only slowly, the Fed may not be ready to raise the federal funds rate until 2015.

This would be a particular problem for the US, where the Fed allowed the Federal funds rate to approach zero in January 2009.

(The Fed raised its benchmark federal funds rate from 1 in 2004 to 5.25 in 2006 and held it there until August 2007).

Fed Up with the Fed

The Fed has signaled that its federal funds rate will remain near 0 , at least as long as unemployment exceeds 6.5 and inflation expectations remain well anchored.

First, the Fed is trying to give relatively specific guidance about the future path of the federal funds rate (the overnight rate at which commercial banks lend to each other).

The Fed pumped money into the US economy and slashed its main interest rate the Federal Funds rate from 3.5 in August 2001 to a mere 1 by mid 2003.

The Fed could, in principle, limit inflationary lending by raising the interest rate on excess reserves or by using open market operations to increase the short term federal funds interest rate.

In order to prevent inflation from spiraling out of control, the Fed should increase the federal funds rate from almost 0 now to at least 3 within a year or so.

Fighting the Fed

The Fed Trap

Audit the Fed?

Blaming the Fed

Seriously fed up.

The Fed warns that it might increase the federal funds rate if the anticipated annual inflation rate rises from its current level of a bit less than 2 to more than 2.5 .

The Fed Under Fire

The Fed in Denial

Sami fed his dog.

Sami fed the dog.

Don t Follow The Fed

Of fire fuel fed ,

And he's fed up with it. He's fed up with burying his friends, his family, his community.

Why the Fed Buried Monetarism

The Fed Versus Price Stability

The Fed Sets Another Trap

The Fed was hardly alone.

The Fed vs. the Financiers

we fed not the needy ,

Of the fuel fed fire ,

Shareholders organized themselves into pension funds, investment funds, and hedge funds.

The Chinese Economy and Fed Policy

Will Fed Tightening Choke Emerging Markets?

How the Fed Just Reduced Inequality

Why the Fed Will Go Faster

The Fed should relearn that lesson.

Full of fire fed by faggots ,

Operating Funds UNDP and UNDP Trust Funds

Emerging Markets After the Fed Hikes Rates

Inflation, the Fed, and the Big Picture

People who don't work, won't be fed.

Why the Fed Should Postpone Rate Hikes

A central element of the theory is that the stock of bonds that the Fed has removed from private portfolios, not the flow of Fed purchases, will determine investors risk appetite. Unless investors thought the Fed was going to buy bonds forever, news about a reduction in Fed purchases should have had only a mild effect on their expectations of the eventual stock of bonds the Fed would hold.

But now commercial banks are willing to hold their excess reserves at the Fed, because the Fed now pays interest on those deposits.

The Fed should know that better than anyone.