Martin Sumichrast | Fed Intervention -It’s not if, but when

imagesEighteen months ago some economists were suggesting the Feds intervention would go into 2015 and beyond. This was wishful thinking. The end to the Feds intervention is near and my guess is that’s is closer than most think. I would be surprised if the Fed was still intervening by this Christmas. The main reason is that control is everything. What’s clear is that they (The Fed) is loosing it. Rates are going up and there is nothing than can be done. So it’s better to act as if this is their doing and pull back, thus showing they are in control. I’m expecting the 10 year will be over 2.5% by end of Q3 and close to 3.0% by Q1 2014. This all assumes we don’t have some major international dislocation (ie, Mideast War) which is always possible. Lock in long term borrowing. These historical low rates are in the rear view mirror.
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