Tag Archives: Open Market Committee
It’s all but a foregone conclusion that the Federal Reserve will lift short-term interest rates tomorrow. The interbank lending rate (fed funds) will tick up to 2.5%, the sixth quarter-point increase in a row since last June. Tea-leaf readers will try to parse Greenspan’s language in tomorrow’s release, but they miss the point.
I haven’t talked much about step-up bonds lately. But it’s time to dust off the topic. Earlier this week, the Federal Reserve released minutes of its December policy meeting. Reading between the lines, it’s clear to me that several members of the Open Market Committee would like to quicken the pace of interest-rate hikes.