![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhX5Td0gDfRmko4GI1n34QF59jFb6Lhyphenhyphen_E2fEGJzr0aBA7_j21fUhGC-Jv9sCFr4GifNO8ZkVyaHrCA848HfnZZn7CDcEBSnctpNqo9epqWWdmnkeLPCDAHZSGPgl0389Sw1qGUpQ/s400/grim.jpg)
Here are two Federal Reserve charts that show how effectively (or ineffectively... ) the Fed is controlling certain key interest rates.
Notice that the top chart shows the spread between AA/non-financial, the rate that most closely tracks the Feds target, and the A2/P2 non-financial, the rate for paper of weaker quality.
As you can see, the spread has simply exploded and does not resemble any pattern seen in the last eight years.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhoutBx86ny3bd7f8NoRVs7hLCWf_S3avbOKmL0hxXLz7lApLi_lSWyblkOevLzIKUswKi5JH4_SXHKnUKQU0Kb5C7sqSsgpKzE2ZhWO5VbrRAUv3iYgEEvIMqe7VgitHIlBJpaJg/s400/a2p2spread.gif)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnrf6XkWrV1YGoxL_bwfwgnKhecUCfCM_EYDpPicFsD5pZqyykER8EWEJ98er-FiOYG8kdwFJ8B24cpEOkR1AXcKvQPMhLj2mU0KmhzqFchcQDlDnrBVxcmRBjWL2DTv9ORTzunw/s400/yieldhistory.gif)