The Federal Reserve’s monetary policy has changed since the 2008 financial crisis, resulting in a lack of direct link between interest rates and the money supply. Recent economic reports suggest the Fed may raise rates further, impacting equity valuations.
Yes, we have banking problems. No, this is not 2008. It’s much more like the 1970s Savings & Loan problems. In other words, we do not have credit problems today, we have duration (asset-liability) problems.
Could this affect your retirement? Here’s a great breakdown on the likely coming if the bill passes the Senate.