Historically where is the fed funds rate relative to the 2 year? Is it Always a bit below it and usually by how much or is it higher ?
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Question on the fed funds rate —-
- Thread starter Innervoice
- Start date
Unfortunately my abilities do not extend to helping you interpret charts. The one you want though is the Chart of fed funds rate and Treasury yields from 1970 forward.I looked at the charts, nothing extraordinary whatsoever. Removing reserve requirement ratios is not the same as lowering them. They only happened to be reduced to zero in 2020 because of the extraordinary events that year. They are generally positive.
On March 15, 2020, the Fed announced it had reduced the reserve requirement ratio to zero effective March 26, 2020. As of January 2022, this reserve requirement was still in effect.
We are now in Sept 2022, please check the fed site, Regulation D I believe. You may want to see if that has changed in the past few months. So far as I'm aware it hasn't, but perhaps I am wrong about that. I would not be surprised to see that the fed has again imposed a reserve requirement -- though such is obviously not an essential component of a funds rate control mechanism.
Last edited:
see the link in Post#3 above. Choose the funds rate vs Treasury yield tab.Historically where is the fed funds rate relative to the 2 year? Is it Always a bit below it and usually by how much or is it higher ?
And I can't help if you continue to choose to speak in cryptic language. What exactly did excite you so much that you wanked all over the thread? That different tenors' yields all converged vs past differentials?
Unfortunately my abilities do not extend to helping you interpret charts. The one you want though is the Chart of fed funds rate and Treasury yields from 1970 forward.
On March 15, 2020, the Fed announced it had reduced the reserve requirement ratio to zero effective March 26, 2020. As of January 2022, this reserve requirement was still in effect.
We are now in Sept 2022, please check the fed site, Regulation D I believe. You may want to see if that has changed in the past few months. So far as I'm aware it hasn't, but perhaps I am wrong about that.