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Stockman: The only beneficiaries of overnight money at 38 bps are Wall Street carry trade gamblers

and they would be just as grateful for an announced peg at 12 bps or 100 bps or even 250 bps. 

The only thing they really care about is short-run certainty about the cost of carrying their gambling chips—-something the Fed’s peg unfailingly provides. 

From the perspective of the main street economy, however, the whole federal funds targeting gambit is a thoroughly pointless farce.


David Stockman at IntCom

Carry Trade


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