Source: The Fed and Wall Street Differ on How High Rates Will Go – Bloomberg Business
As most everyone one knows the Fed this last week raised rates for the first time since 2006. If you are in the Keynesian economic camp you may be hesitant to embrace this change, but if you are in the Monetarist economic camp you are thinking it is about time. Of course for most of us who do not follow the latest economic theories we are primarily wondering how this will affect home values and stock portfolios. It is important to understand that this change is not a one time event and does not happen in a vacuum of a narrow time frame. The changes will take place over the months ahead as the Fed considers future increases. Many factors went into the decision to raise rates but the overriding factor was a belief that the economy was stable enough to begin the road back to a somewhat normal interest rate structure that would ensure a stable dollar. How that plays out is where the debate really intensifies and as you can imagine there is no shortage of opinions. The Fed and Wall St actually see the markets from different prism’s and depending on how events unfold it will be interesting to see who is right. For an interesting read on the tension between the Fed and Wall St click the attached link.
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One thought on “The Fed and Wall Street Differ on How High Rates Will Go – Bloomberg Business”
Good article. Why is there a picture of Mrs. Doubtfire?
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