Jul
01

Roiling Rates

acrpolisThe unfolding Greek tragedy won’t directly affect the US as US banks hold almost no Greek debt, but may impact us indirectly. If things get volatile in Europe, the ECB will increase bond purchases, putting downward pressure on interest rates and investors will flock to safe-haven US bonds. This would increase the value of the dollar, hurt exports and reduce inflation, and thereby possibly delay the Fed’s first rate rise.

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