Journal Article
Why haven't long-term interest rates fallen?
Abstract: In 2001, the Federal Reserve lowered the federal funds rate target more than it had in over 25 years, but long-term interest rates didn't budge. Has monetary policy become ineffective? Just the opposite, the authors argue. The stability of long-term rates shows that people don't expect inflation to rise. That confidence, especially in light of the dramatic shocks the economy experienced, attests to the success of the central bank's policies.
Keywords: Interest rates; Federal funds rate;
Access Documents
File(s):
File format is text/html
https://fraser.stlouisfed.org/title/4515/item/627771
Description: Full Text
Authors
Bibliographic Information
Provider: Federal Reserve Bank of Cleveland
Part of Series: Economic Commentary
Publication Date: 2002
Issue: Jan
Order Number: 1