Quote:
Originally Posted by EDS_
If a ~2.5% eFFR move in a matter of weeks does not indicate to you that the Fed. was behind/realized it was behind the inflation curve I can't help you.
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If you looked at the link I posted, you'd notice there was not anything particularly unusual about the steepness of the rise in the FFR of the late 90's.
There was a similarly steep rise in 1994-95.
There was a similarly steep rise in 2004-2006.
There was also a very steep one in 1984. And in 88-89.
And also in the 70's and before.
What's even worse about your argument is that inflation in the late 90's wasn't any different than it is now:
https://fred.stlouisfed.org/series/CPIAUCSL#0