Back in Sept 10 3-month Libor was 5.72% while Fed target rate was 5.25%, i.e. the spread was 48bps. Now Libor is 5.04% and the spread is 54bps. Sounds like a record to me.

Just to put this in prospective – back in January the spread was 11bps and was unchanged during the March panic (what kind of panic it was?). The first time it rose this year it was August 10, it went to 25bps.

The Feds did three cuts but the effect is like they did only one. The money are expensive