[lbo-talk] Krugman on interest rate weirdness

[Doug Henwood]

On Mar 24, 2008, at 1:02 PM, Michael Pollak wrote:

> Well his argument is that the Fed rate is now 2.25%, but the  
> treasury rate
> on both 1 and 3 month notes is a little above 0.5%

It would be a serious problem if the Fed couldn't hit its target -  
if, say, funds were 3.0% when the target is 2.25%. That would be a  
sign of serious stress. But they're hitting the target.