Fed going to far? Not yet.

3.5%, a neutral point.
Alan Greenspan is generally admired as a genius. But don't forget he's also this crazy guy who raised or dropped interest rate several times more when clear stop signs were already in place. It's not too bad up to this point. And there's no indication that Alan will give up. But he's going out too. He can stay up to next Jaunary. That leaves him two more opportunities to raise rates, October and December. So his legacy is going to be 4%. I hope his successor will take a breather to evaluate first, because by then, I think, it will be pretty tight monetary policy.