How have various asset classes performed when the Federal Reserve begins tightening by raising short-term interest rates. Photo by Joe Wessells In this episode you'll learn: How interest rates have declined over the decades.What determines interest rates.What are different measures of inflation.How long after the first Federal Reserve begins raising its policy rate have recessions begun.What have stocks, bonds and other asset categories returned one year after the Federal Reserve … [Read more...]
MNY051Plus: Why Are Interest Rates So Low?
In this week's Money For the Rest of Us Plus episode, I discuss What are equilibrium real rates of interest and why they are important. How does the Federal Reserve decide when to raise short-term interest rates. Why has the equilibrium real rate of interest been so low and what influences it. The episode length is 15 minutes. … [Read more...]