Velocityshares Daily 2X Vix Medium Term (TVIZ)

[gldtimer]

Fed Still Accommodative...but Not by Much

Using factory utilization and CPI core inflation the theoretical real short term interest rate should be -1.0% with the actual rate (using a .75% FF rate) is -1.35%

Now if inflation holds constant along with utilization AND the Fed raises rates up another .50% during 2017 THEN the Fed will become restrictive for the first time since 2008!

BUT until (if) that happens the Fed is still accommodative pushing both growth and inflation higher.