1% or less interest hike for the entire year is fine for the stock
market. The Fed's job is to compromise inflation and deflation (or
overheated economy / slow economy). Quite a easy job for a 10-year old
by adjusting the interest rate.
The rate should be at least 3% if
inflation is 3% (now it is a little less according to some government
stats). The fix incomers should be fine.
Too high will lead to collapsing the market as the margin is at recent high.
The CEOs should manage their companies instead of boosting up their stock prices via easy money. About time!
Investors,
do not buy long-term bonds / CDs as their values are inversely
proportional to the rate. For a simplified illustration, a 10 year bond
would lose 10% for 1% hike over the holding period.
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