Mohacsy's Safe Portfolio Member Forum

[Elroy Jetson]

These short term rates don't mean much. What's important is to watch the effect they might have on longer term interest rates.

If long term interest rates fall as the Fed raises short term rates, the market will be saying they think the economy is too weak to sustain a rise so they want to lock-up longer term yields.

A flattening of the short to long term rates is bad for lenders (less margin on loans) and has a tendency to attract money out of equity markets.