The Feds' morning rate cut is leading the news today, but as Paul Krugman says, it's not clear how tight the relationship between Fed fund rates and most businesses is anymore. As example, in July, the Fed set a target rate on 30-day A2/P2 commercial paper of 5.25%. The actual rate tracked closely, hitting 5.4%. This week, a lengthy series of cuts had the Fed target rate down at 2%. But the rate businesses were paying was 5.61%.
