http://money.cnn.com/2008/07/22/news/economy/sloan_fed.fortune/index.htm?postversion=2008072213

 
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2 Comments on Interesting Article - Two Fed myths that need debunking

JUL
23
2008
115,236 Points 1 Featured Post Outside Blog

I read a blog post this morning by another person here on AR that was declaring that since the stock market was going up again, so would mortgage rates.  I didn't comment...

7:08am • #1

i didn't get to read that post, but I want to know how he knows the market is going up!  If we could all get the same info, we can retire!

Seriously, the connection between the market and interest rates is there, but on a totally different plane.  If that were true, each time the market went up, the fed would, of course have to raise rates.  How much does the market need to go up before the fed raises rates?  Is there a set amount?  What happens if the market falls below the set level, does the fed lower rates? 

There is no basis to the comment, but we should all be more financially competent.

10:29am • #2

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Joseph Scorese

Manalapan, NJ

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