In September 2016, the U.S. Federal Reserve decided not to raise interest rates, instead keeping the U.S. central bank’s target range for the federal funds rate at 0.25 to 0.5 percent.
The Fed stated that they did not raise rates for a variety of reasons including the fact that the labor market is strengthening and that inflation is remaining low.1
And while the conditions under which the Fed would raise interest rates haven’t transpired, it’s still good to take a look at what happens when interest rates rise and what it means to the average investor.
Interested in what interest rates mean to your financial goals and future? Be sure to contact Steel Valley Investment Group of Raymond James at 610.709.9715.
Views expressed are not necessarily those of Raymond James & Associates and are subject to change without notice. Information contained in this report was received from sources believed to be reliable, but accuracy is not guaranteed. Information provided is general in nature, and is not a complete statement of all information necessary for making an investment decision, and is not a recommendation or a solicitation to buy or sell any security. Past performance is not indicative of future results. There is no assurance these trends will continue or that forecasts mentioned will occur. Investing always involves risk and you may incur a profit or loss. There is an inverse relationship between interest rate movements and bond prices. Generally, when interest rates rise, bond prices fall and when interest rates fall, bond prices rise.