June 12th, 2007
Here is an article about pressure that the Fed is feeling to raise rates. This isn’t the most likely scenerio in my book, but here is the information so that you can form your own opinions. Fed Faces Pressure to Raise Rates, Options Show.
If the Fed were to raise rates, you would probably see the 6M and 1Y CD rates begin to approach 6% (25 – 40 BPs increase), but the long-term probably wouldn’t change nearly as much (maybe 10 – 15 BPs).
-- By +Chris Duncan