As is clear in chart 1, the Federal Reserve was generally successful in keeping the federal funds rate from spiking above the target rate; indeed, the effective federal funds rate was somewhat below the target rate at times.
Emerging market economies have decelerated recently and this has spilled over and amongst others, impacted negatively on world trade volumes. Domestic economy South Africa continues to suffer from the aftermath of the tragic events that occurred recently. Economic activity has slowed down sharply, particularly in the mining sector.