Interest Rates Will Rise April 26, 2018

While interest rates have been profoundly low until quite recently, the winds of change are coming. The Fed is beginning to meaningfully reduce its balance sheet, and large federal deficits are starting to appear, both of which will increase the supply of Treasuries. Add to that a steadily weakening dollar, the expectation of faster GDP growth, slowly rising inflation, and slightly faster wage growth, and higher rates seem inevitable.