Eric Basmajian: Real Fed Funds Rate Negative in Most Recent U.S. Expansion

Eric Basmajian: Real Fed Funds Rate Negative in Most Recent U.S. Expansion
Real Fed Funds rate negative since 2008

Eric Basmajian examines the trend of the real Fed Funds rate during economic expansions. According to Basmajian, since the end of the 2008 recession, the real Fed Funds rate has been negative approximately 75 percent of the time.

He raises the question of whether the current economic cycle will conclude before the average real Fed Funds rate turns positive.

Basmajian has previously observed that U.S. real personal income per capita is now $3,267 below the 2009-2020 trend following a period of stagnant growth. In a separate note, he explained how averaging finished and unstarted homes in housing data obscures cost differences within the sector. His research highlights specific pressures in both consumer income and housing cost metrics.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
Weekly Top Bonuses
up to $2,500
deposit bonus for all clients
CLAIM BONUS
Your capital is at risk.