Fed Cut A Mistake

The Federal Reserve is blowing it. Inflation is at 4% and they continue to dig an economical pit by cutting rates.

Some of the very best CD rates are barely at 4% right now and that is for 50+ months. So if you have your money in most accounts then you are losing money. Prior to this week, the Fed had cut 300 basis points off of the federal fund rate in hopes to boost the economy & patch up the housing market. 

It has not worked so far and they are continuing to play their broken record. The more they play, the more inflation we are experiencing.

We have been fortunate that the mortgage backed securities have not felt the inflation pinch. How long can that hold out for? Will we see 7% this year on the 30 year rates? All arrows point to yes.