The red line is the difference in the spread we discussed above. Notice to the far right, in June 2022, the real rate of interest was -8.3{aa99edd08dd66036bd4af6c3dbe8af9b4ab31fcc55a521c2956d094a6dcd3a48}. In other words, policy was so weak, it had no effect on prices. At the time, the effective fed funds rate was close to zero while inflation growth peaked at 9.1{aa99edd08dd66036bd4af6c3dbe8af9b4ab31fcc55a521c2956d094a6dcd3a48}. So, shortly thereafter, the Fed started a series of aggressive rate hikes to get price growth back under control.
The Fed’s Rate Cut Cushion Is Good News for Crypto
