News Summary

• The Federal Reserve raised interest rates this week, or did they?
• The Fed definitely raised two interest rates : the overnight federal funds rate it targets and the interest on reserves rate it sets.
• But the 10-year Treasury yield that serves as a benchmark for mortgages and corporate debt barely moved.
• The estimate of the longer run rate was in a pretty consistent decline for several years after the Fed started publishing it in 2012.
• This was the period of “secular stagnation” and “savings glut”