Dollars and Jens
Wednesday, September 20, 2006
fed funds
The fed has a meeting tomorrow, and, just in time, this morning the producers' price index was announced, and the core level has dropped (dramatically) for the second month in a row. Bonds rallied, and the difference between nominal and real yields is the lowest it's been since last December, and it's nearly the lowest it's been since we were talking about deflation.

In short, if the Fed raises rates tomorrow, it's time to leave the country.

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