Ritchie the financial prognosticator

The US Fed has overseen what has been, in effect, the biggest quantitative easing programme the world has ever seen. But that has now ended. And it says US bond interest rates, which are still near enough zero for all practical purposes must rise. Not just by a bit, either. They are apparently forecasting 1.5% by the end of 2015, 2.75% by the end of 2016 and 3.75% by the end of 2017.

Oh dear. His linked source, at the FT, says that this is about the Federal Funds rate, not US bond interest rates.

Would sorta help if one committed to telling us all about this vital market actually knew the difference.

1 thought on “Ritchie the financial prognosticator”

  1. (Assuming he is talking about the benchmark 10 year ‘bond interest rates’, which is the yield which is usually referenced), he’s telling us that the yield is going to rise from its current 2.1% to 1.5% by the end of 2015 ?

    Or let’s be generous and say he was talking about the 5 year yield, which he’s pronouncing will rise from the present 1.56% to 1.5% by the end of next year.

    I hope he’s got some decent PPI insurance, alongside his required investment qualifications, if he’s passing on this sort of advice.

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