Interest rates have been all over the place lately, and this article does a great job of breaking down what’s been happening. It’s clear that the Federal Reserve is trying to manage the economic uncertainty that has come in the wake of the coronavirus pandemic, and it looks like they’re having a hard time doing so.
It’s understandable that the Fed is taking drastic measures to try and stabilize the economy, but it’s concerning to see the sheer volatility of interest rates. It seems like some kind of bipolar behavior, with the rates going up and down at a moment’s notice. This is creating a lot of uncertainty for businesses and consumers alike, and it could lead to some serious problems down the line.
The Fed needs to find a way to make interest rates more stable if they want to help the economy. We can only hope that they find a way to do this soon, because the current situation is not sustainable.
At 51, I’ve seen more than a few recessions, and this one is certainly one of the strangest. It’s understandable why the Fed has taken such drastic measures given the uncertainty that has come with the coronavirus pandemic, but it’s definitely raised some concerns about its effectiveness. Volatility of interest rates can be unnerving and many people are watching nervously to see where they might go next.
It’s important for the Fed to find a way to achieve stability in the market if we are to have any hope of getting back on track economically. I think everyone is hoping that they will be able to do this soon, as extended periods of volatility tend to lead to increased risk-taking due to fear of missing out on potential returns which could turn out costly in the long run.