Rising Interest Rates: The Downside of Economic Recovery

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Over the last several years, investors have grown accustomed to historically low interest rates. Ever since the Federal Reserve Board’s target fed funds rate–the rate at which banks lend to one another–hit a high above 19% in mid-1981, the long-term direction of rates has been downward. In the last decade, the Fed’s data* shows the [...]

Inflation or Deflation: Watching for Warning Signs

There’s been much debate in investing circles over the last year about whether inflation or deflation represents a more likely threat to the future of the U.S. economy. With a recovery that’s still tentative compared to previous recessions, measures designed to stimulate the economy or cut spending to rein in the budget deficit provoke warnings about their potential to create one or the other.