- A negative scenario implies economic growth and inflation not reaching the FED’s estimations, which wouldn’t be such a bad thing for stocks in 2017.
- A positive scenario implies the FED’s estimations to be met, a potentially dangerous situation for stocks.
- A federal funds rate of 2.1% by the end of 2018 would see the S&P 500 at 1,629 points, all other things being equal.
Finally, The FED Had The Courage To Increase Rates
After more than a year of waiting, the FED finally decided to increase interest rates.
You probably know that this is because unemployment has reached natural levels and inflation is rapidly moving towards targeted levels. On top of that, the FED forecasts to raise interest rates by another 0.75 percentage points in 2017.
Today we’ll discuss the potential repercussions this rise in rates could have on the economy and our portfolios. More →