Poll: Have Interest Rates in the US Finally Started Their Upward Climb toward Normalcy?
Interest rates in the US have started to rise over the past month, surprising many in the investment world. We asked readers of the CFA Institute Financial NewsBrief earlier this week: Have interest rates in the US finally started their upward climb toward normalcy?
For many of the 918 respondents (approximately 42%), the answer is “Yes, recent increases are in response to important changes in the interest-rate landscape.” These readers are probably thinking about some of the improving fundamentals in the US economy and recent US Federal Reserve comments indicating that Quantitative Easing is likely winding down. But more than half of respondents think that recent movements are not toward normalcy, with about 33% believing that the interest rate increases will soon mitigate and the rest of the naysayers (25%) thinking that interest rates will decline once more when the global economy weakens.
Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.
I guess the environment is still not yet clear on how the interest rates will be trending onward, however, I strongly believe that we need more positive news and solid actions to be seen before expecting substantial increase in interest rates over medium-long run …
Hello Almsaeed,
Thank you for sharing your views. For what it is worth, I think you are correct in your assessment.
With smiles,
Jason