Wednesday, December 14, 2005

Fed boosts interest rates

Fed boosts interest rates, signals end game - Martin Wolk: Eye on the Economy -

Are we at the end?

Does it even matter? The Feds been raising rates since June 2004 and the rate on the 10 year treasury is virtually unchanged.

Yes, it does matter and the Fed has been very affective at getting short term rates to rise. The 3 month treasury was under 1% in June 04', in 2005 it crossed the 4% mark before dropping sharply to where it is today, 3.61%.

Rates matter and have an effect on everything, the question is really what will happen when the new Fed chief takes over next year.

Scott Dauenhauer, CFP, MSFP