The Extension of the Extended PeriodApril 01, 2010 Posted by: Joe Morgan, CFA
In recent weeks we have seen interest rates on the rise some 20 percent or more! Of course, that’s only about 20 basis points in the front end, but many believe this indicates a market gearing up for interest rate increases. Indeed, many pundits are calling for interest rate increases as soon as next quarter.
Unfortunately, I have to disagree.
You might think I’m relying on Federal Reserve Chairman Ben Bernanke’s repeated mantra about the “extended period” of a low rate environment. But I don’t really buy this statement.
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