On Mon, 24 Mar 2008, Doug Henwood wrote:
> Maybe they can't but the level of T-bill interest rates isn't much
> evidence that they can't. If anything, it means the Fed is lagging the
> market, not leading it. (The market assumes the Fed will be cutting
> more, so rate reflect that assumption.)
I'm not sure I follow this -- the 1 month T-bill is at 0.5% because the market expects the Fed funds rate to come down 1.75% in the next month?
Michael