Later this week – (actually TODAY – this post was set to go out on Monday but did not), Janet Yellen, head of the FOMC (Federal open market committee) are set to do something many have never seen before.
It’s been a long time
It’s hard to believe, but it’s been almost 10 years since short-term rates have been increased. Given this fact, the end of the quarter, AND the end of the year, it’s not surprising capital markets are a bit jumpy. It will be interesting to see if the Fed does increase rates, which we have hoped for some time. A measly .25% will make very little difference to the overall economy, and may actually help gain confidence, setting the stage for potential slow and steady continued increases. The Fed has reiterated that they are data dependent …. Making further increases unpredictable, at least getting off of zero, again in our opinion, is a good start.
It would not surprise us, to see Capital Market’s put on a happy face after the FOMC meeting later this week. Until then, we will stay tuned!
John A Kvale CFA, CFP
8222 Douglas Suite 590
Dallas, Texas 75225