Source: LPL Research, Federal Reserve 01/31/19
Inflation-Adjusted Fed Funds Rate
Upper Bound Fed Funds Rate
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Last Hike in Tightening Cycle
Dec. 2018 Fed Funds Rate: 2.5%
Inflation-Adjusted Fed Funds Rate: 0.3%
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Chart assumes last rate hike in the current tightening cycle is December 2018.
Inflation-adjusted fed funds rate is the upper fed funds rate minus year-over-year growth in the Consumer Price Index.
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