Rates Unchanged

Since the economic news continues to be dyslexic and a real recovery seems to be far away, interest rates remain largely unchanged the past 2 weeks.  The Federal Reserve announced this week that they will stop buying Treasury Bonds and let the market take over.  The fear here is that the market is not strong enough yet to moderate itself and there will not be enough buyers for these bonds.  If that happens, the price of the bonds will go down to attract buyers and the interest rates will go up.  I don’t envision the Federal Reserve sitting around though to let that happen.  If the market is not ready for this and interest rates head up, I expect that the Fed will take action again.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: