Monday, October 28, 2013

3rd Time's the Curse

The following chart shows nominal department store sales (in black) compared to the federal funds rate (in red).


Click to enlarge.

On the off chance we were to enter a recession while still in ZIRP, then what exactly would we expect the Fed to do?

Oh, wait. I forgot that it is common knowledge that the Fed has permanently put a stop to recessions. Never mind. Silly question.

Source Data:
St. Louis Fed: Custom Chart

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