3rd Time's the Curse

The following chart shows nominal department store sales (in black) compared to the federal funds rate (in red).<br /><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZDKV97FE-GUnTbs1Z_SJeyo40gk7GsEV6iS2i4QqU6rDAZhwixDu-KRMhnILGIdEu-X1K6Pk_RHlo4t6rnEsHWieW0WiY_0pP4Qjo0My_aO1KuXE8ds28RvByPlDBb2QeUIz4bm1cR-4/s1600/Department+Stores+vs+Fed+Funds.jpg" imageanchor="1"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZDKV97FE-GUnTbs1Z_SJeyo40gk7GsEV6iS2i4QqU6rDAZhwixDu-KRMhnILGIdEu-X1K6Pk_RHlo4t6rnEsHWieW0WiY_0pP4Qjo0My_aO1KuXE8ds28RvByPlDBb2QeUIz4bm1cR-4/s320/Department+Stores+vs+Fed+Funds.jpg" /></a><br /><span style="font-size: x-small;">Click to enlarge.</span><br /><br />On the off chance we were to enter a recession while still in ZIRP, then what exactly would we expect the Fed to do?<br /><br />Oh, wait. I forgot that it is common knowledge that the Fed has permanently put a stop to recessions. Never mind. Silly question.<br /><br /><b>Source Data:</b><br /><a href="http://research.stlouisfed.org/fred2/graph/?g=nOp">St. Louis Fed: Custom Chart</a>

3rd Time's the Curse

The following chart shows nominal department store sales (in black) compared to the federal funds rate (in red). Click to enlarge. On the of...

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