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27th April 2015
Citywire

WAITING FOR YELLEN: WHY US INTEREST RATES ARE LINGERING NEAR ZERO

With inflation in the US held back by the lower oil price, even a strengthening economy may not tempt the Fed to raise interest rates just yet, as once it starts there will be no going back.

There has been a difference of opinion between the US Federal Reserve (Fed) and the bond markets for some time about when US interest rates will start rising. The undeniably good macroeconomic news appeared to support the Fed’s repeated warnings that rates would go up sooner rather than later. But markets did not bite, as shown by record low bond yields reached in the first quarter, which remain low today despite the Fed recently taking a less dovish stance in its official outlook statement.

Link to original article: 

http://citywire.co.uk/new-model-adviser/news/waiting-for-yellen-why-us-interest-rates-are-lingering-near-zero/a811537?ref=new-model-adviser-investments-list