Dollar Collapse; Stock Market Sell-Off Looms

Excerpt:  With Wall Street begging the Federal Reserve to cut the Fed Funds target rate, few have noticed the effective rate already has been lowered, triggering what could be the beginning of an unprecedented worldwide dollar sell-off.Econometrician John Williams documented in the most recent newsletter on his Shadow Government Statistics website that in the 11 trading days since the Fed has cut the discount rate, the effective Fed Funds rate has averaged 4.84 percent, ranging 25 to 50 basis points below the official 5.25 percent target rate. The Fed Funds rate is the rate at which commercial banks may borrow excess reserves from one another. It is considered the key rate index set by the Federal Reserve Open Market Committee, or FOMC.

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