Get ready for higher interest rates, FINALLY !

Janet Yellen and the FOMC (Federal Open Market Committee) finished their two-day meeting smack in the middle of last week … GREAT NEWS!

Higher Interest Rates in 2015

This Wednesday the FOMC released their statements on the economy, and most importantly their estimate of short-term rates in the future.

Check out this new chart: Each Dot is a vote by FOMC members!

10-14 Fed Dot Chart

The average estimate for short-term rates in 2015 is now 1.27%

Think about that for a moment….What a relief to get SOME return on our short-term money, FINALLY.

Side effects and immediate responsibilities

  • Time to lock in any floating debt rate as it will most likely be more costly next year
  • Not time to stretch for yield in bond land as longer term instruments may be under pressure
  • Corporate executives, float that debt quickly, the window is closing
  • Still not time to go into High/Junk Yield Bonds
  • Finally time to earn more on our short-term “safer” investments

Have a soon to have more money in our pockets, Great Day and super weekend!

John A. Kvale CFA, CFP

PS Ok…now let’s get there slowly, NOT abruptly !

PSS Let the weaning begin !!!

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

 

 

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