My guess is, especially after today’s strong employment report, they stick with another 0.25% Fed rate increase.
Will that increase CD rates? Maybe.
Longer rates have already been climbing, so keep an eye on those CD rates now.
The last time I checked it said the fed would raise rates another .25%.... Shorter term CD's to follow in a few weeksI know there is no crystal balls but what would be your guess on CD rates going up after Nov.1st Fed meeting?
Thanks
The last time I checked it said the fed would raise rates another .25%.... Shorter term CD's to follow in a few weeks
I'll check again.
With today's strong employment report I believe the Fed will raise .25 in the remainder of 2023.
I also still believe we will see an uptick in inflation in the 4th quarter which will start with the CPI reported in November. However, my belief has diminished somewhat due to the recent drop in oil.
It will be interesting to say the least.
Dollar's strength reduces prices of many commodities.Oh, I hadn’t noticed oil had dropped down closer to $80. Thanks!
I know there is no crystal balls but what would be your guess on CD rates going up after Nov.1st Fed meeting?
Thanks
I have no idea where rates are headed. But It’s a widely accepted myth that high interest rates is automatically negative for stocks.
The media perpetuates this myth daily with headlines pretty much every day the market moves down. “ fear of higher rates push stocks down……”
It’s so baked into people’s psyche it’s scary even in the face of historical data that debunks that myth.
Historical returns
What about starting at 0-6%? These appear to only be 2 PT spreads...either way, the 4-6% is pretty crummy by comparison.
The way I read it is when the 10 year bond starts out at X the return on stocks has historically been Y.
sure, that range is less, but still pretty good in my book. I guess my point is you wont see a chart like this as the leading news story because that isn't what sells. And it debunks , with data, the narrative that higher rates spell doomsday for stocks.
OK but WHY? What's the mechanisms driving that? It seems counterintuitive.
OK but WHY? What's the mechanisms driving that? It seems counterintuitive.