So the Fed dropped the target for the Federal Funds rate to 1.25%, which, according to the WSJ article on the rate decreases, is below the Fed's 1.8% inflation figure. So we've got a negative real interest rate for this money, yes?
Two questions:
--Has this ever happened before?
--Does this amount to a polite admission that deflation could be
a real problem?
-- Curtiss, wondering
PS. If this is obvious to the economists here, just send me stuff offlist.