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Focus on the treasury interest rates, not Fed rates
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At its upper range, that 10-year yield may be high enough to dampen the enthusiasm of many entrepreneurs and stock investors and to restrain the stock market and the economy.
PHOTO: REUTERS
Jeff Sommer
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Watch out for interest rates. Not the short-term rates controlled by the Federal Reserve. Barring an unforeseen financial crisis, they’re not going anywhere, especially not after the jump in inflation reported by the Government.
Instead, pay attention to the 10-year Treasury yield, which has been bouncing around since the election from about 4.8 to 4.2 per cent. That’s not an unreasonable level over the last century or so.
