Inflation isn’t a concern these days, affording the Federal Reserve elbow room to keep interest rates at, well, virtually zero.
The futures market doesn’t expect the free-money train to end any time soon. Even looking a year out, Fed funds futures are still pricing the central bank’s target rate at under 1%. The FOMC hasn’t done anything to disabuse the crowd from that view. Last month’s official monetary confab press release advised that “the Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent…for an extended period.”