Fed Funds Rate Hike: Timing and Severity Are Greatly Overblown

If the financial markets were able to write a history book ahead of time, the theme for 2015 would likely be “the year that Janet Yellen and the Federal Reserve finally raised interest rates.” Market pundits and economists have been predicting a rise in the federal funds rate for quite some time, and the first fed funds rate hike still seems likely to occur in 2015. What investors need to consider in 2015, versus prior years, is that this interest rate hike cycle is unlikely to be the same as prior rate hike cycles. It is likely to be far slower and much more muted, and many market participants want a return to somewhat normalcy in interest rates.

24/7 Wall St. has evaluated many tools and the commentary from market pundits and market economists. After looking at the commentary over recent weeks and comparing to the latest CME 30 Day…