Higher Interest Rates on the Horizon?
Maybe Scott Grannis was spot-on – the FED is indeed worried about inflation and could be poised to create higher interest rates. BECAUSE the demand for cash is decreasing and bank loans are beginning to accelerate.
Good news for us and small- and medium-sized businesses – bad news for a FED that wants to get ahead of banks using those massive reserves.
So today we get:
Chair Yellen said, “the FED will not increase rates for a considerable time after it stops QE, perhaps six months….”
The market was set for rate increases about 7/15. She opened up it could be a year from now, 3/15. So adjustments were made.
Stocks usually decline when the FED steps toward higher interest rates. Stocks look 6-12 months ahead. So stocks may start feeling the effect in March.
— via John Hook & Co. For Subscribers Only
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