Rate Hike Fears are irrational imo......
even if rates are moved up bit by bit due to inflationary concernes, I believe it could take a year or more before any effect should be seen in the market (and that is with successive monthly rate hikes).
Rates are so low now, how many hikes and how long would it take to raise rates to 6%, a quarter or half a point at a time.
It took over 6 months for the rate hikes in 1999 to show up in the market after successive hikes and we were starting from a much higher level at that time (rate wise).
Actually, I don't think the economy or market is on sound enough footing to warrant ANY hike as yet imho.
The market is telling the Fed this exact thing at this time imo.
We need to get on very sound economic footing before any hike should be considered. The job market still STINKS to high heaven too, not to mention the fed. deficit! imho. :)
