Tuesday, August 9, 2011

Just how long does "extended period" mean?

With the Fed set to speak shortly, we're likely to hear the words "extended period" once again.  I thought it might be interesting to look at some historical data for some guidance on just how long that "extended period" could be.  Above is a chart of the 3mo Treasury rate from 1934-2011.  Notice that rates stayed this low for the period from 1934 until about 1948.  Just 3 years into our modern day ZIRP environment, we could be down here for a long time...

UPDATE: Well, I guess it's officially at least 2 more years...Thanks for the quick response, Fed!

No comments:

Post a Comment

For compliance reasons, I don't post comments to the site, but I do like hearing from readers and am happy to answer any questions. Feel free to use the comment box to get in touch. Please leave an email address in your comment so that I can write back, or email me directly at Skrisiloff@avondaleam.com.