[expat_panama]

idea that the Federal Reserve sets the rates?

They do set the discount rate, which has a lot of influence.

[LurkingSince'98]

"They do set the discount rate, which has a lot of influence."

A lot of influence is like close in horseshoes - its good most of the time, but when push comes to shove the Fed will be following the curve in a major attempt to catch-up.

It is more than a little comforting to know that the Fed doesn't run everything. The problems is that they have influenced everything (your words) to the point that when the break comes their leverage will be gone.

Regards,
Lurking'

[justshutupandtakeit]

And the federal funds rates.