History tells us that when the FED starts to raise interest rates, sooner or later the economy will be hit.
Today, we’ll discuss what’s going on with rates and the economy, and where we are in the current economic cycle in order to determine portfolio risk exposures.
The Relationship Between Interest Rates & The Economy
If we take a look at the chart below representing the effective federal funds rate, we can see that usually but not always, a tightening period is followed by a recession depicted by the grey columns. More →