The New CS Board

[jumanji0881]

The perma bulls have worn that argument out:

fed buying program????.....rates allways go up in anticipation of an economic boom


Rates have moved up because bond holders fear the Fed will taper and then end QE. I don't think they will taper or end QE, but QE is causing more problems than it is supposedly solving. The Fed is clearly worried about the bubble in housing, junk bonds, and even stocks. The Fed has artificially suppressed rates since 2008 and they are now responding to a possible removal of that suppression. Rates are not moving up because of an expected economic boom, but it does not surprise me that I hear that argument quite often in business commentary.