Why do the markets react or not react to the FED changing interest rates
Why do the markets react or not react to the FED changing interest rates?
Post and reply to (to at least one) the topic of why the markets are so affected by the changing interest rates of the FED and expectations of inflation.
https://www.capitalgroup.com/pcs/latest-perspectives/why-the-bond-market-is-reacting-calmly-to-fed-rate-hike.html (Links to an external site.)
https://www.marketwatch.com/story/us-inflation-expectations-decline-to-lowest-level-since-late-2017-2019-06-10 (Links to an external site.)
After reading the articles attached (and any others you would like), comment on how the markets for debt and equity have reacted to recent actions by the FED and whether you think these markets will continue to be good investment grounds or if investors should pull up stakes and leave. How does the low level of inflation impact investors expected returns.
Answer preview to why do the markets react or not react to the FED changing interest rates
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