Growth Rate Adjustment…

It took the CPI report today to get rates to test the 4.354 % average resistance level even exceed it to 4.421 % at the high. See yesterdays chart.

That was a much-needed bounce up from the December 23, 2023 recent low of 3.935% as rates adjust to a higher growth environment. Even with that in the bag, the Fed Fund rate is still 1.00% above the average market rate. At some point, down the road, the Fed Fund rate will be cut.