This infographic shows how Fed tapering works, and its impact on the economy.
Read More »Interest Rates NOT Rising Any Time Soon – Even With Fed Tapering. Here’s Why
Everyone and their mom is expecting long-term interest rates to rise now that the Fed is tapering its bond buying programs. I have a couple of problems with this line of thinking because, although it seems like reducing demand for a security (i.e. tapering QE) would result in a drop in price, when you really think about how quantitative easing works this makes no sense and, secondly, the market is telling us this makes no sense. Let me explain.
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