Will the interest rate rise in the USA first then follow others?
I think fed might increase interest rate in the short run and sometimes medium term as well to control inflation then they will reduce again until the economy improves. Next four months in very crucial. It is time to focus on best sectors, out of favour sectors, neglected sectors and consumer staple sector. Thanks.
Do you think so?
Best Answer
4075 points
EthanR answered 5 months ago …
Interest rates have risen sharply in the past two weeks. I am looking for a short term correction, but then followed by another rise in interest rates. The bond market anticipates the Fed moves. However, much of what the FED does will be determined by the unemployment numbers, retail sales, and the price of oil. If the FED begins to tighten, any chance for recovery will be choked off if those numbers remain weak. Only if we see improvement in those numbers can slow rate hikes be assimilated into the system without much problem.
I will leave the sectors part of your question to someone else.
