What Are the Top 6 Drivers of Interest Rates?

There are 6 top factors or drivers that move interest rates:

* Economic data -- Interest rates go UP when non-farm payrolls are higher than expected, unemployment rate goes down, or with better than expected economic data in general; rates go DOWN when jobs data is stagnant or declines, manufacturing is stagnant or slows, or housing is weaker than expected;

 *Inflationary pressure -- Interest rates go UP with higher consumer prices index results, higher wholesale prices and higher hourly earnings; rates go DOWN with lower consumer prices, lower wholesale prices, and lower hourly earnings;

*Stock market -- Interest rates go UP when the stock market goes up; rates go DOWN when stocks markets decline;

*  The federal reserve -- Interest rates go UP when the Fed appears to anticipate pulling money out of the monetary system, or when money is in fact being pulled out of the monetary system, indicating inflation; rates go DOWN when cash is added to the monetary system; 

*Geo-politics -- Interest rates go UP when, for example, tensions ease in the Middle East or Europe, or large countries' GDP increases;

*Other global events (Rates go up with little catastrophe or damage or world events going on; rates go down with hurricanes, typhoons, tsunamis and earthquakes).