what happens if ST interest rates go up ?

Discussion in 'Trading' started by luisHK, Mar 30, 2011.

  1. luisHK


    With Hoenig today saying ST rates should go to 1%, and Bullard talking in the same vein, what is the chance of it happening, and when ?

    Besides what will happen to stocks once it's announced ? Market doesn't seem worried today, but I've seen the charts of sp500 spiking up when a surprised rate cut was announced and the contrary wouldn't be pretty :(

    hat do you reckon ?
  2. It's not gonna happen...
  3. Roark


    What would happen to Obama's re-election chances if rates went to 1%? I don't think it would be good for Obama so the rates will probably stay at current levels.
  4. AK100


    You make a valid point but at the same time what a pathetic world we live in now when a politician's election chances are threatened by rates of just 1%.

    It sums up the current economic malaise perfectly.
  5. luisHK


    Kocherlakota mentionned the rate increase today, it seems the fed is preparing the market to it. Not sure what's worse for Obama, a rate increase or high inflation. How do you think the market will react if that increase happens ?