Traderfirstyear -(Bonus)Investment Note-In the next series of pictures I will explain the rules and framework around a lower for longer and zero interest rate policy. Why the Federal Reserve will be at the zero lower bound for at least 5 years (2020 to 2025.) $SPY $DIA $QQQ Old Rules for Rate Hikes (the Federal Reserve Raises Rate if..) (1.) Real GDP is higher than Potential (Trend) Real GDP (2.) Long Term Bond Rates start to Rise Rapidly (3.) Inflation Expectations & Inflation Rises Rapidly above 2% The Federal Reserve will temporarily disregard growth above Potential, Rise in Long Term Bond Yields, and any transitory change or spike in inflation or inflation expectations. Real Federal Funds Rate-Core PCE 0.25 - 1.5% = -1.25 Interesting is the Range in 2022 If Core PCE Rises to 2% Target 0.1 - 2.0% = 1.75% 0.6 -2.0% = 1.40% Range in 2023 If Core PCE Rises to 2% Target 0.1 - 2.0% = -1.75% 1.4 - 2.0% = - 0.60% The FED is Explicitly Signaling Real Yields will remain Negative