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!
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