A Glimpse of Interest Rate Forecasts for 2017

Interest Rate Forecasts pic
Interest Rate Forecasts
Image: bankrate.com

Darin Pastor heads Capstone Financial Group Inc., as its chairman and chief executive officer. The Irvine, California, holding company focuses on investing in outstanding stock in other promising corporations and assisting those corporations in maximizing revenue. Darin Pastor’s previous experience serving the financial industry includes executive positions with the Prudential Insurance Company of America and JPMorgan Chase & Co.

Investment companies worldwide constantly check expert forecasts for the near-future outlook. In the second half of 2016, the consensus among major American financial publications was that, even in the event the Federal Reserve elects to raise interest rates, rates are apt to vary only slightly for some time to come.

Some anticipated a rate hike by the close of 2016, and stated that in any case they expected one or more increases in the prime rate, as well as in additional short-term rates, over the course of 2017. In early 2017, rising wages may result in heightened market anticipation of inflation, which would strengthen the Federal Reserve’s inclination to raise interest rates.

According to Kiplinger, the Federal Reserve tends to maintain rising interest rates in response to a strong upward trajectory in inflation, or in cases where it hopes to bring the federal funds rate close to its standard level of 3 percent.

Meanwhile, investors remain most attracted by companies that demonstrate progress through sustained upticks in their earnings statements and capital gains on their stock, even through cycles of low interest rates.

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