Economics Homework Help
University of North Alabama Interest Rates and The Market Discussion
I’m studying for my Finance class and don’t understand how to answer this. Can you help me study?
Why do the markets react or not react to the FED changing interest rates?https://www.capitalgroup.com/pcs/latest-perspectives/why-the-bond-market-is-reacting-calmly-to-fed-rate-hike.html
https://www.cnbc.com/2019/06/19/heres-what-the-stock-market-liked-from-the-fed.html
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? And do you think inflation will be more of a factor in the future?