So, what's going on with rates? I checked the market first thing this morning and we were getting crushed.
Colin Barr, a senior writer for "Fortune," reports that the Fed has reversed its course. That fighting inflation is now its priority. That would mean that there will not be any further dereases, but rather potential increases. Personally I don't believe that there will be any Fed inspired rate increases in the near future, but that doesn't mean that the market, in general, may not push rates higher.
We need consistency from the Fed. Their loosey-goosey attitude toward rate decreases and throwing around $$$$$'s, in general, may have gone to far.
"The last two Fed interest cuts were made, unusually, over the objections of two members of the policy-setting Open Market Committee." Colin Barr, Fortune.
Does this mean that the Fed surrendered to political and media pressure?
One presidential candidate is touting an additional $50 billion dollar stimulas package.
We're still have that quick fix mentality. It won't work that way. A consistent, well planned economic policy will lead us back to a higher rate of growth. We STILL haven't had a single quarter of negative economic growth, and therefore by definition are not and have not been in a recession, no matter what the national media continues to write.
So where are rates headed?
But, I strongly suggest that you,
Pay attention now!