Do you think it's the Fed?
It's not.
The market determines short term interest rates.
Really.
The Federal Funds Rate, which is set by the Fed, FOLLOWS 3 month T-Bill rates. It does not lead the economy. Here are some looks. First the whole data set, going back to 1954, presented in Graph 1.
Federal Funds data from FRED.
T-Bill rates from a different Federal Reserve site
These are tabulated monthly values. But the T-Bill rate is set in a weekly auction, and the Fed Funds rate is set by the Fed Open Market Committee, on an arbitrary schedule, at their discretion.
It's not.
The market determines short term interest rates.
Really.
The Federal Funds Rate, which is set by the Fed, FOLLOWS 3 month T-Bill rates. It does not lead the economy. Here are some looks. First the whole data set, going back to 1954, presented in Graph 1.
Federal Funds data from FRED.
T-Bill rates from a different Federal Reserve site
These are tabulated monthly values. But the T-Bill rate is set in a weekly auction, and the Fed Funds rate is set by the Fed Open Market Committee, on an arbitrary schedule, at their discretion.
Graph 1 Fed Funds and 3 Mo. T Bill Rates, 1954-2011
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