The Fed says there will be 3 rate increases in 2018.

  • Posts: 1204

Replied by FrankN on topic The Fed says there will be 3 rate increases in 2018.

Agreed. Borrowing has been cheap for a long time and am not surprised the M&A on companies and houses are still going strong. Eventually we will see this end, but just don't know when.
1 year 10 months ago #1

Please Log in or Create an account to join the conversation.

  • Posts: 241

Replied by Lexie on topic The Fed says there will be 3 rate increases in 2018.

It will be good for the savers FRANKN but not so good for the borrowers. So goes the economy. If one rises, so does the other. I can tell you that in my neck of the woods there has bee a significant increase in home building and selling. I guess folks are trying to get in on the lower rates.
1 year 10 months ago #2

Please Log in or Create an account to join the conversation.

  • Posts: 1204

Replied by FrankN on topic The Fed says there will be 3 rate increases in 2018.

Lexie wrote: Due to the decreased interest rates in savings accounts, people have found it more advantageous to invest money rather than save it. In order for an institution to lend money, they must have the money/savings to lend. Therefore, interest rates on savings must go up to make the lending worthwhile which in turn makes the lending rates increase.


We should expect to see that over the next 18 months.
1 year 10 months ago #3

Please Log in or Create an account to join the conversation.

  • Posts: 241

Replied by Lexie on topic The Fed says there will be 3 rate increases in 2018.

Due to the decreased interest rates in savings accounts, people have found it more advantageous to invest money rather than save it. In order for an institution to lend money, they must have the money/savings to lend. Therefore, interest rates on savings must go up to make the lending worthwhile which in turn makes the lending rates increase.
1 year 10 months ago #4

Please Log in or Create an account to join the conversation.

  • Joker
  • Joker's Avatar Topic Author
  • Offline
  • Junior Member
  • Junior Member
  • Posts: 169

The Fed says there will be 3 rate increases in 2018. was created by Joker

There has been much debate over the prediction of the Feds increasing interest rates 3 times in the next year. With a December Fed rate hike almost fully priced in, market-implied odds of another rate increase by March held around 55 percent, based on trading in federal funds futures. Unemployment is at a 16 year low, so besides the declining dollar, what is our biggest accelerator toward increased interest?
1 year 10 months ago #5

Please Log in or Create an account to join the conversation.