Proof That the Fed Doesn’t Control Interest Rates
Before every Fed meeting, investors and pundits wait in a state of high alert. Will the Fed raise rates? Cut them? Do nothing?
They are wasting their time.
The Fed doesn’t control interest rates; it’s the other way around.
History shows that the T-bill market moves first — and the Fed follows.
On August 30, 2007, Elliott Wave International used this reliable relationship to forecast a dramatic rate cut. Three weeks later, the Fed fulfilled their prediction. And they kept doing so until T-bill rates bottomed. This chart shows how the Fed’s rate constantly lags the T-bill rate.
This relationship has held true for decades. And not just in the U.S. – but in Europe, the U.K., and Australia, too.
Chapter 3 of The Socionomic Theory of Finance tells the full story of markets’ global dominance of interest rate policy. Read it &mdash FREE — for a limited time.