The elephant in the room is when interest rates will start to rise. Is our economy strong enough to handle it this quarter, this summer, even this fiscal year? Yes, I think so; from the look of the employment and housing sectors (determined to be the greatest contributors to the Great Recession), we have reason to believe that a .25% increase in the Fed’s Cost of Funds rate would not take our flow of money to a grinding halt. Remember that rate has been at 0% for the last six and a half years.
Am I encouraging a rate hike? Absolutely not; I make my meager living on low interest rates and affordable housing. The reality though is that it’s probably time to get out of the way of that elephant.
