Will’s Quarterly Perspectives
Practical perspectives on investing, financial planning, and stewardship.
Interest Rates, the Fed & What Investors Should Know
Interest rates have also been a big topic in the financial news lately. You may have heard that the Federal Reserve is expected to raise its target interest rate again this week, as inflation has remained more stubborn than hoped. [1]
But what does a quarter-point increase actually mean for you?
Interest rates are one of the most important levers in the financial system. Whether you have a mortgage, earn interest on your savings, live off a bond portfolio, are considering a large purchase, or simply watch your investment account, interest rate changes likely affect you in some way.
In other words, rates show up almost everywhere.
Crude Reality, Calm Perspective
I hope you’ve been well since my last letter and are enjoying the deceptive peeks of spring weather (for those of you here in the Midwest).
I try to avoid rehashing current events in these articles since they get enough news coverage as is, but I’d be remiss not to touch on the war with Iran and the closure of the Strait of Hormuz which have pushed oil prices higher and led to increased market volatility.