L1: interest ratesHello. I am holding tight for now hoping that the 120% rate will go up so I can get a decent 72Twithdrawal. Can some of you in the know look into your crystal ball and let me know what your predictions are for the rate maybe by the fall? It appears that the rate is inching up. Thanks!!!2009-03-09 16:08, By: waiting and hoping, IP: [188.8.131.52]
L2: interest rates
Crystal balls tend to be pretty murky at the best of times, let alone when politics is running rampant and making market rending decisions.
That said, the Fed is at least somewhat independent of all this babble and will tend to raise interest rates when combating inflation. The HUGE increase in deficit spending that is now occurring WILL cause inflation at some point and perhaps LOTS of it. When that happens, the Fed will raise interest rates. Unfortunately, in a very fragile economy, such as we now have, the Fed will be loathe to raise interest rates and risk derailing any recovery we may get from the current recession. The short answer is that interest rates will rise from their current lows but when that will occur is anyone’s guess. My guess is that this will not occur until at least mid-2010.
2009-03-09 16:37, By: Ed_B, IP: [184.108.40.206]