Interest Rates: Where are They Headed?

A lot of folks are worried about the interest rates; they are wondering whether or not we should expect an increase or will interest rates remain the same. Ok, we know that there are certain economic signals that indicate where interest rates are headed. The first one we want to look at is the demand for money. Based on the economic reports that have been published; the demand for money has been drastically reduced, so that one is settled.

Listen up, people are hiding their money, ok, they are hiding it. Alright, alright, they are not; they are just saving for rainy day and it seems that there are plenty of that ahead. (rainy day). So, savings have increased and retail sales have been reduced; in other words, consumers are saving more and buying less, therefore the demand for money is reduced. Thus, one need not worry about an increase in interest rates because of the low demand for money. Thus, the value is down. (money cheap price low). Well then, are interest rates set to decline, quite likely, "they that be" might have to reduce interest rates to induce demand.
E&OE

—Wesley Palmer, MBA http://www.wezpa.com***To post a comment:Click the "Post a Comment" link below the article. Type your comment in the “Leave your comment” box. Type in the security word in the “Word Verification” box. Choose your identity (usually “Anonymous”) and then click “Publish your comment”.Thanks for posting a comment!