Quick Comments – Profiting Beyond The Fed Rate Increase – Mar 21 2018

Mar 21, 2018 | Quick Comments, Trade Alerts and Ideas

Some quick comments this afternoon.

The Federal Reserve decision to again raise interest rates is to be expected.

Once the Federal Reserve begins to raise rates, it is rare when rates will be lowered again for not months but for years. My original forecast when the first rate increase was announced by then Chair Janet Yellen was for rates to reach 3% before the Federal Reserve would slow rate increases.

I do believe that is accurate and based on what the Federal Reserve Chair Jerome Powell is commenting on today, the outlook is for a 3% rate by the end of 2019. He then has also commented on 2020. This is because historically the Federal Reserve raises rates in a series of increases and not until they see a “serous” restriction in the market (is recession) does the Federal Reserve act in the opposing way.

That means investors should be aware that further rate increases are almost guaranteed and that will make trading more difficult at times.

Here are my comments on the rate increase and how to profit beyond the present rate hikes.

The rest of these quick comments are for FullyInformed Members.