Interest Rates

[Ilmater]

Up or down in the future? I would think down to help the economy, but up to stave off inflation. What are your thoughts on where interest rates will go in the next 2 - 3 years? Any articles to back up those opinions?

 

[PingSpike]

I don't think the fed will be able to pretend rampant inflation doesn't exist for much longer.

 

[Aharami]

which interest rate you talking about. If mortgage, i believe they are heading up. They have gone up a significant amount already

 

[IceBergSLiM]

equivalent to peering into a crystal ball.

 

[pstylesss]

Mortgage rates are going up up up.

 

[Special K]

Forecasting interest rates for the next 2-3 years is impossible. I would guess both short and long-term rates are going up, only because inflation has become a major concern lately. Like IcebergSlim said though, everyone's predictions here are about as good as the crystal ball they are using.

 

[maddogchen]

for interest rates for savings accounts at banks....hopefully up up up.

 

[lozina]

I think they are going DOWNUP

 

[IHateMyJob2004]

They'll be going up. Right now the interest rate spread is about 1.25% (the difference in the rate that banks borrow and lend)

The fed is going to be forced to raise interest rates. This is going to casue the spread to tighten. The only thing banks can do is borrow the rate at which they are lending.

The side effect of rising interest rates is that it should help to strengthen the US dollar. To anyone that thinks that rates will stay here, or go down, you are wrong and not thinking straight. What is the point of borrowing money at a lower rate if the goods we buy from overseas cost more?

regardless of inflation rates, and what the fed does in the future, be aware that in bear markets, inflation rates can get up to 7%. And this bear market could have legs (10-20 years). If it does what has happened in the past (bear markets last as long as the previous bull), you are looking at a 17 year bear market. That means stocks will trade sideways (not go up or down).

 

[Special K]

Originally posted by: IHateMyJob2004
They'll be going up. Right now the interest rate spread is about 1.25% (the difference in the rate that banks borrow and lend)

The fed is going to be forced to raise interest rates. This is going to casue the spread to tighten. The only thing banks can do is borrow the rate at which they are lending.

The side effect of rising interest rates is that it should help to strengthen the US dollar. To anyone that thinks that rates will stay here, or go down, you are wrong and not thinking straight. What is the point of borrowing money at a lower rate if the goods we buy from overseas cost more?

regardless of inflation rates, and what the fed does in the future, be aware that in bear markets, inflation rates can get up to 7%. And this bear market could have legs (10-20 years). If it does what has happened in the past (bear markets last as long as the previous bull), you are looking at a 17 year bear market. That means stocks will trade sideways (not go up or down).

17 year bear market? What years are you defining to be the "previous bull market"?

 

[Billb2]

If I knew, I wouldn't tell and I'd get rich..........

Intreat rate futures change on a daily basis. I future rates were known, the futures wouldn't change would they?

 

[LegendKiller]

They have to go up at this point. ECB and others are going up.

 

[BurnItDwn]

They may stay where they are at for a little while more, but then they are going to go up as the Fed is going to try to combat some of the inflation.

 

[JS80]

up up down down left right left right...

 

[TruePaige]

Originally posted by: JS80
up up down down left right left right...

A B A B...

 

[Slew Foot]

Thats B A B A....

And yeah, up if BB knows whats right for America.