What do you expect to happen to short-term interest rates and long-term interest rates during the next year?
What factors this year might make them change?
Answer:
I don't see the rates changing. We have too many mixed signals in the economy and the Fed finds safety in continuing with the "norm". They will only raise rates if inflation goes over 3%, they don't want to do anything to hurt the housing market or tale spin the economy downward.
That's a good question. Fortunes are made by people who know the answer.
I do know that rising 10yr bond rates cause the Dow to go down and the price of consumer goods (like food) to go up.
Short term rates (3m), usually react to overseas incidents.
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Answer:
I don't see the rates changing. We have too many mixed signals in the economy and the Fed finds safety in continuing with the "norm". They will only raise rates if inflation goes over 3%, they don't want to do anything to hurt the housing market or tale spin the economy downward.
That's a good question. Fortunes are made by people who know the answer.
I do know that rising 10yr bond rates cause the Dow to go down and the price of consumer goods (like food) to go up.
Short term rates (3m), usually react to overseas incidents.
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