Historical Real Fed Funds Rate

The Real Fed Funds Rate is the Fed Funds Rate adjusted for inflation (CPI-U).

There are a few things of interest in this chart to me.

1. Our recent interest rate environment looks a lot like the 1970s.
2. The rates are sitting at pure neutrality right now.
3. It took more than pure neutrality to break inflation's back in the 1970s.
4. Our housing market can't take more than pure neutrality.
5. I wouldn't want to be in Ben Bernanke's shoes.