This Makes the Fourth Time it Has Raised Rates since 2008
The Fed raised Interest Rates today 1/4% or .25 basis points, and represents the third increase in a row. They increased rates despite weak economic indicators as express in weaker than expected job growth and lower than expected retail activity. Inflation fell last month and the core CPI ( Consumer Price Index) rose less than economists had expected.
The FED Chair, Janet Yellen, stated that she is “not buying the recent low readings on inflation”.
The FED also stated that it expects to begin reducing its balance sheet this year.
It is of the opinion of many, including myself, that the FED will not drastically raise rates for many years to become. The reasoning is that our national debt has grown so large that it would be impossible to service the interest on the debt if interest rates become too high. The bottom line is if you agree with this then you have no long term fear with purchasing “interest rate sensitive’ stocks.