It needs to be around 2.5 basis points to have an impact. But that would be Lehman all over again.
Mortgage rates are at 6.2%, which is progress. Fed funds rate has got to exceed the inflation rate, which they are jawboning as around 10%. Real figure is likely close to double that.
However, the real issue is that the price of a gallon of fuel - diesel and gas - has to start dropping or its not going to matter how high the interest rate goes.
It’s like a gushing fuel pipeline on a white-hot piece of metal raising PPI no matter what the Fed does.
Biden’s going to have to reverse policy on domestic production before too too long.