McClellan Chart-In-Focus: Setting The Fed Funds Target Rate – April 12, 2019

Mr. McClellan states: I have long advocated for the FOMC getting out of the business of setting short term interest rates and, instead, they should out-source that job to the 2-year T-Note yield. While that out-sourcing might put several American PhD economists out of work, I am okay with that, because it would give us the benefit of having more efficient monetary policy, with less severe bubbles and depressions.

In this article, Mr. McClellan says that it is incumbent on the Fed to gets its Fed Funds target in step with the 2-year T-Note yield. You can access the full report here: McC_041219

About Bob Weir 3242 Articles
Bob Weir has over 50 years of investment research and analytical experience in both the equity and fixed-income sectors, and in the commercial real estate industry. He joined eResearch in 2004 and was its President, CEO, and Managing Director, Research Services until December 2018. Prior to joining eResearch, Bob was at Dominion Bond Rating Service (DBRS).