Brown: Interest rates due to rise?
Are we on tap for an increase in interest rates? According to Garrick Brown, director of research at real estate firm Cassidy Turley, the harsh winter most of the country has been experiencing is responsible for weak employment figures earlier in the month, and in addition to the drag from that and the recent stock-market fluctuations, the inevitable rise in rates may well be delayed.
“Most of the top analysts I know out there were looking at April or May as being the months where we would probably see this happen,” Brown wrote earlier this month. “But if this continues, I would venture to say that timetable may be delayed.”
There is already talk, Brown notes, that the Federal Reserve may slow the tapering of the stimulus – which makes him think that a June or July timeline for rate increases is more likely.
So does this mean the economy is on the edge? Brown says no.
“The weather has been incredibly lousy,” he writes. “That is it.” For now, he adds, we are continuing at the same slow pace of recovery, which is frustrating to us but may actually benefit the investment marketplace.
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