Since it is one of the most powerful instruments Governments have to intervene at the economy you can track its rises and falls and expect a delayed response at the economy and at stocks markets. This is particularly clear when divergences appears between interest rates and stocks indices. See following post for more details.
Short term interest rates are also a good instrument to gauge how much "aid" does the Economy need at a given time. Since 2007 highs we dropped 96% , it means much more aid is needed and it is not diminishing (IRX price is not rising on the chart). Just keep this in mind particularly when politicians and media come across with their intelligence-insulting-BS.
So the recession is over??Economy is ok now??. Let me ask: Where are the jobs?
Moreover, how can you expect us to believe that Economy is recovering if it needs immense ammounts of "aid" from short interest rates?.... please....
http://www.wikinvest.com/concept/Interest_Rates
