Interest Rates

Powell is probably setting the stage for the end of once-a-quarter rate hikes sometime next year. Whether the Fed will raise rates four more times next year or stop earlier than that – is the real question. December is here and there might me another hike in March, but the September 2019 hike looks to be off the table. Read more on Kiplinger.

David Cockfield on Interest Rates

What’s going on with interest rates? Powell did change the game, but not as much as people think. We’re amazingly free from inflation, so there’s not the same incentive to push things up. We got too far ahead in terms of interest rates. We could stay at 3% for a while, so stocks will do OK. If the curve starts to invert, that would indicate trouble ahead.

For now there’s a little fear from inflation, but it is still harder for things to move forward. With interest rates at 3% stocks should do fine, but we still have to look closely at yield curve.