Wednesday, May 06, 2009

Sorry Ben, You Can’t Control Long Term Rates

On March 18th, the Federal Reserve committed to buying up to $300 billion in long-term Treasuries. The market initially celebrated and interest rates immediately fell on the 10-year note from 3.02% to 2.51%. Less than two months later, rates have spiked up to 3.17%. That jump in rates jeopardizes the nascent recovery in the market and economy.

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