This afternoon (6-10-2020) The Federal Reserve Board will make much anticipated announcements regarding interest rates. No one knows for sure what will be said, but KTRH Money Man Pat Shinn says the announcements will be influenced by many factors including the state of the stock market. "The stock market, which looks forward, has correctly anticipated that the economy has recovered, that the recession is probably over."
Shinn says hiring increases could also be a factor. "The initial jobless claims fell for the ninth week in a row. Last Friday's Jobs Report came in far better than what analysts had expected."
He's doubtful some interest rates will be greatly raised. "We do expect that at some point The Federal Reserve will target longer term interest rates, the last thing The Fed wants is to raise longer term interest rates now.That causes mortgage rates to be higher as well as business lending rates."
Photo: Federal Reserve