Recalcitrant Rates

recalcitrantLast Wednesday, the Fed kept short-term interest rates unchanged. But, the Fed’s communication was more dovish than expected, despite essentially unchanged economic forecasts of growth, inflation and unemployment, suggesting that the threats to the economy are to the downside. The take away; the Fed is no rush to raise rates, the ultimate rate is likely to be quite low (3%), and getting there will take years and years.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.