The backwards Fed system

On a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers declined 0.3 percent in November after being unchanged in October. The index for all items less food and energy increased 0.1 percent in November after rising 0.2 percent in October.

Raising the Fed deposit rates inject free unencumbered cash into the economy.  Lowering the fed lending rates extracts free unencumbered cash from the economy.  Letting Congress take all of the incoming flow just slams the Fed up against the boundary and it become useless.  We are confused because equilibrium times are thirty years.

The economy has reached its limit, some 2.5% of economic flows are dedicated to government interest payments. DC has to run a surplus and put some cash into savings so the Fed can raise deposit rates.