Focus on the target, not the instrument - InvestingChannel

Focus on the target, not the instrument



This tweet caught my eye:

While rising three-year yields might represent a lack of commitment on the Fed’s part, rising interest rates are equally consistent with bond market participants now becoming more optimistic about the economy. This might well be good news.

Interest rates are only a means to an end; the only credibility that matters is the Fed’s 2% AIT.