Also in this playlist...
This transcript is automatically generated
Dennis Saturday at -- it would John Lonsky things in this news John's chief economist at Moody's investors.
-- looks like he's kind of going up against Ben Bernanke and the Fed have they said 2014.
-- -- happened to be perfectly honest would view.
Nobody really knows just how well the economy will be doing a year from now worked through years from now that being the case.
Any time you say that the Fed will hike rates in 2013.
Or two foul word late 2014.
You are definitely engaging.
But I think there is.
And implicit wording.
It goes as follows a lacquer is telling everybody.
Not to bat too heavily on federal funds remaining close to 0%.
-- -- the end of 2014.
Because if you make that type of -- if you make that type of gamble UK -- end up being badly burned.
Does this have to be bad instantly for the stock market if interest rates go up could it mean that we're starting to heal.
That's exactly right in -- you know if you go back and you look at -- history.
Federal Reserve rate hikes that you -- you compare that with their performance of the equity market.
You'll come across something very surprising let me give you an example.
The last series of fed rate hikes began at the end of June 2004.
It was not until October of 2007.
That the equity market -- I can go prior to that.
The previous series of extender rate hikes began.
In February of 1994.
And it wasn't until march of 2050.
Equity market -- so this particular statement.
Does not just the flight even the slightest.
Bit of my -- But all or panic -- of part of investors while that's good they -- John if the Fed raised a quarter point.
It's not like our economy would come to a stand still we can afford a quarter pointedly.
I would think -- -- -- you know would make life easier.
All for a lot of those retirees that are still trying to look offer their savings accounts I mean you might get -- Up at a -- slightly better return.
From very short term money market -- -- instruments as a result and moreover you could give some breathing room.
For those managers that money market funds.
All right nicely done John Lonsky on the -- -- -- -- -- way to go thanks very much Cheryl.
Filter by section