The Interest Rates That Really Count Already Moved – and It's a Disaster

Wall Street and the media breathlessly waited for Yellen & Co. to hike the fed funds target from 0% to 0.25% up to 0.25% to 0.50% - a move that's been telegraphed for months and largely already priced in to the ZIRP-addled markets. The drama around this move was manufactured. You can't call those rates anything but accommodative. But with so much focus on the fed funds rate, it's really not surprising that the media missed the fact that the really important rates have been on the move since July. Meanwhile, "overnight money," money that the central bank loans overnight to banks (and which the Fed influences through open market operations), has barely budged. We're looking at a liquidity crunch like nothing we've ever seen before. Here's how it happened and how bad it's likely to get... Tags: December Fed rate hike , Fed rate hike , Federal Reserve System , Interest Rates , interest rates disaster , interest rates moved , The Fed To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2015 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post The Interest Rates That Really Count Already Moved – and It's a Disaster appeared first on Money Morning - We Make Investing Profitable .