Click here to read the original article on ETFdb.com.
Related Posts:- No Related Posts
Higher Rates on the Horizon? Three Implications
March 26, 2014 at 19:00 PM EDT
While the Federal Reserve (Fed)’s announcement last week of further tapering was widely expected, investors were temporarily taken aback – at least for a day – by the prospect of an earlier-than-expected rate hike. New Fed Chair Janet Yellen’s comment that the Fed could hike short-term rates six-months following the end of quantitative easing (QE) came as a surprise. If the Fed follows through, and continues its current pace of tapering, this could mean rate hikes in the spring of 2015, earlier than the markets had previously forecasted. The notion that interest rates might rise somewhat earlier than expected was also reinforced by more optimistic economic projections from Fed members. While the path of future rates is still data dependent, and it’s not yet entirely clear whether the market interpreted the Fed correctly, the possibility of higher rates does have three implications for investors, as I write in my new [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
While the Federal Reserve (Fed)’s announcement last week of further tapering was widely expected, investors were temporarily taken aback – at least for a day – by the prospect of an earlier-than-expected rate hike. New Fed Chair Janet Yellen’s comment that the Fed could hike short-term rates six-months following the end of quantitative easing (QE) came as a surprise. If the Fed follows through, and continues its current pace of tapering, this could mean rate hikes in the spring of 2015, earlier than the markets had previously forecasted. The notion that interest rates might rise somewhat earlier than expected was also reinforced by more optimistic economic projections from Fed members. While the path of future rates is still data dependent, and it’s not yet entirely clear whether the market interpreted the Fed correctly, the possibility of higher rates does have three implications for investors, as I write in my new [...]
