Is it true that the Fed looks at 30 day, 90 day, and 1 yr T-bills to determine whether or not to raise rates?
What should one make of the claim that the Fed simply responds to rises or falls in the market in order to determine whether to raise or cut rates?
Is this analysis correct:(?)
When rates on these bills are low, thats because the economy is underperforming and people flock to treasuries for safety, but when they are high, this indicates better economic conditions, as the government has to offer more interest to attract investors away from higher return investments people feel more comfortable making.
Also, why have we not seen the crisis that was widely predicted when the Fed raised rates? How can one tell whether or not the rate increase was due to economic recovery?