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.
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