Jan 15 2008
Economic Notes - Fed Cut
Take a moment this week and click on the “Economic Notes” tab and read the article. The Fed cuts rates to stimulate the market, mainly the stock market. A strong stock market is a weak bond market. If people sell their bonds to get into stocks then bond values drop. Bond values decreasing means interest rates rising. Everyone thinks when the Fed is cutting rates that it is cutting mortgage rates - not the same thing at all.