October 23, 2008

The Federal Reserve uses the fed funds target rate to implement monetary policy, raising the rate to curb inflation and cutting it to stimulate economic growth. The chart shows the Fed is having difficulty keeping the actual effective rate in line with its target, suggesting a half-point cut at next week’s FOMC meeting is likely.

Aggressive Fed cuts have taken its target rate down to 1.5%, well below the official 4.9% inflation rate. Interest rates approaching zero and hundreds of billions of bailout dollars flying off the printing presses at the Treasury have only one implication… higher INFLATION is coming. At Casey Research, all of the editors of the flagship publication The Casey Report continue to monitor the inflation outlook and how best to position yourself for its arrival.

Stay ahead of the trends with our special offer to try a subscription to The Casey Report for only $9.95 a month for two months... Do it today and you'll soon read the November 1 edition featuring our latest recommendations and the Inflation/Deflation Smackdown -- a critical debate featuring co-editor Terry Coxon taking the case for inflation against deflationist Bob Prechter, the best-selling author and president of Elliott Wave International. Plus Bud Conrad's Crisis Update, Doug Casey on the Greater Depression and much, much more.  Click Here For Details.





 


 
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