When do interest rates go up?

Thanks man, Are those low 3s considered lower than they are now?

Rates right now are in mid to upper 2’s. Probably will be that way to start the new year

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I thought the fed said rates likely to stay the same for the next 3 to 5 years?

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The rates banks lend with each other is not significant to most of us consumers. The 10 year treasury rate is the indicator for mortgage rates. Nobody has said the 10 year will not go up for 3-5 years.

Jay would takeover the MBS market before he allowed mortgage rates to moon.

True. We really have been in an amazing cycle with interest rates. People have come to expect cheap money. Powell won’t let them go up under his watch.

Thus far the Fed has walked a tight rope regarding monetary policy.

You are correct, easy money should result in inflation. However, we are teetering in the edge of

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deflation

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so the Fed increased the money supply dramatically to try and increase velocity (i.e. economic activity). Meanwhile most measures of inflation have been tame.

It almost seems like they have it all figured out (and it’s true they are paid big bucks to keep the economy from disaster). But as soon as you think you have solved the puzzle, another economic/fiscal/monetary issue arises like a game of whack-a-mole.

If Biden gets in, Janet’s lieutenants plan to start equity purchase.