In the heat of financial market turbulence, it is difficult to determine whether a situation of illiquidity (a market impairment) is temporary or permanent. To make this determination, it is useful to recall the Arrow-Debreu theorem of complete markets. 7 In reality, complete markets do not exist because of information costs and because not all agents participate in all markets.
As was noted in the Federal Open Market Committee’s statement, our assessment is that the most recent data have further strengthened the case for increasing the target range for the federal funds rate.2 The markets put a probability of above 70 percent on the 1/2  BIS central bankers' speeches  rate being increased in December.