Look for Steadiness from the Fed The Federal Reserve is set to make its first policy statement of the year on Wednesday, so this is as good a time as any to reiterate our view that the Fed is likely to keep short-term interest rates steady through 2020 and, while pressures will build, the Fed
Tag Archives: Interest Rates
Don’t obsess about the Federal Reserve. Instead of obsessing about monetary policy, investors should spend their time this year focused on the resilience of the economy. For example, in spite of the partial government shutdown, initial claims for jobless benefits hit 199,000 in the week ending January 19, the lowest since 1969. And auto analysts are forecasting solid sales of cars and light trucks for the month. In other words, the data shows no justification for doom and gloom.
Higher Rates On the National Debt Won’t Cause Debt Spiral. Don’t get us wrong. We’re not happy about the federal debt being so high. In fact, we’d prefer it to be much lower. We’re just explaining that the higher interest rates we’re likely to see in the next few years are not going to generate a fiscal crisis.