SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : MDA - Market Direction Analysis
SPY 665.67-0.9%Nov 17 4:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Zeev Hed who wrote (69520)2/19/2001 9:46:51 AM
From: KyrosL  Read Replies (2) of 99985
 
I agree that LT interest rates are much more relevant for the consumer than ST. But will LT interest rates follow ST rates down? The Fed only controls ST interest rates. LT interest rates have gone UP since the Fed lowered in January. And, if the surplus disappears, foreigners sell some of the 40% of US Treasuries or 20% of corporates they own, and inflation perks up some more, LT rates will go up a lot more, regardless of what the Fed does with ST rates. The Fed's control of interest rates is much more tenuous than is generally believed. We are increasingly dependent on the kindness of friends and strangers.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext