August 19, 2015

The financial press is reporting that some of the voting members in the FOMC believe that the economy may be ready for the first increase in short term interest rates in 7 years. While many pundits are wondering what the Fed knows that the markets do not know, a more interesting question is what will happen if the Fed does increase interest rates? We will let the data guide us as to what will be the likely effects of a rate increase.

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