What factors determine interest rates and why interest rates matter to the economy and your investment portfolio. In this episode, you'll learn: What are real rates.What is the equilibrium real rate of interest.What is full employment.How central bankers try to influence interest rates .How future short-term rates influence long-term rates.How can interest rates be negative.What are term premiums.How inflation expectations influence interest rates.What is secular … [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...]
How Have Bonds Performed Prior To and After The First Federal Reserve Policy Rate Increase
This audio lesson shares the performance of various bond sectors in the three months prior to and the three months after the first Federal Reserve policy rate change. The episode length is 8 minutes. … [Read more...]
22: Will Interest Rates Ever Increase?
What causes interest rates to rise and fall, and what can you do to adjust your investment portfolio when interest rates begin climbing. In this podcast, you'll learn: What is a bond and what is the best measure of its expected return.How you can use a bond or a bond fund's duration to measure interest rate sensitvity.Why I invest in fixed income.What influences the level and changes in interest rates.How countries compete with each other for capital based on their level of interest … [Read more...]