Federal Reserve Raises Interest Rates – First Time in More Than Nine Years
In 2006, the Federal Reserve raised interest rates for the last time (23 rate increases in that last cycle). Since that time, the Fed lowered interest rates to zero or near zero and kept them there far longer than anyone expected.
Finally, in December of 2015, the Fed reversed course and raised interest rates by a 1/4% (25 basis points) in probably the most telegraphed move in history. The fixed income market reacted with a ho hum and kept on its merry way. At this point, no one knows if the Fed is leading the market or if the market is leading the Fed.
On the program this week, I discussed the Fed’s rate increase, delved into the high-yield bond market and then did a short primer on fixed income.
Gary Allen on Business – Sunday, December 20, 2015
Segment 1 – Fed Raises Interest Rates
Segment 2 – The Party is Over (High Yield Bonds Crumble)
Segment 3 – Fixed Income Primer
Segment 4 Fixed Income Primer
This marks the final show for 2015 and with that a big thanks to my producer Justin Siddhu for all the fine work this year. I want to wish all my listeners a very happy holiday season and a healthy and prosperous New Year! I can’t wait to get started on our new shows in 2016, which marks my 18th year on KNBR. Where has the time gone! – Gary