Kevin, Before you plan to engage in arguments you would better try to get 'reliable information' out of undisputed sources for the accuracy of information reported like The Wall Street Journal, or Federal Reserve data, instead of poping the cream out of some flawed (and arguable) data from a doubtful source... which is ?
There is no doubt in my mind that your 10% figure on June 30th, 1994 for the Federal Funds Rate is a REAL JOKE. Could you provide me as well the high, low and closing bid ? (that would be interesting...). Though painful it will be I will search paper archive of the WSJ just to prove you wrong.
I still MAINTAIN that FEDERAL FUNDS Target SET RATE is ALWAYS ABOVE the DISCOUNT RATE, whatever you say. Please give me a date for your 1993 allegations ?
Still the Discount Rate is of ANECDOTICAL IMPORTANCE by the amount of money exchanged at that rate, as compared to the Federal Funds Rate.
Currently the Discount Rate is 5%, the Federal Funds target SET Rate is 5 1/4%.
As for the latest record I have on last Thursday June 6th, 1996 the Federal Funds Rate high was 5 5/16%, low 5 1/4%, 5 1/4% near closing bid, 5 5/16 offered. It shows that market pressure and the Fed allows the Fed Funds to go slightly (not to 10%!) above the set rate of 5 1/4%.
As I believe you are not an Economist at any rate, otherwise you wouldn't have told such unbelievable stories. Anyway you look at it, I would be frightened to see you at the Federal Reserve Board. |
