In This Chapter
Learning about fed funds futures
How the yield curve affects Fed policy
Why the real fed funds rate is important
Understanding the TED spread
There’s no shortage of commentary on financial news websites about what the Fed’s thinking. Sometimes these sites know what they are talking about, and sometimes, well, they miss the boat entirely! But what are the people who are putting real money on the line saying about the Fed? That is, when traders and investors put their own and their clients’ money into the financial markets, what does that say about monetary policy? If you know where to look, the financial markets are “tea leaves” for Fed policy.
Before we jump into fed funds futures, ...