MONEY NEWS FROM THE MOTLEY FOOL: WHAT TO DO BEFORE INTEREST RATES RISE

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The U.S. economy has come a long way from the depths of the Great Recession. In the second-quarter, U.S. GDP grew 2.3% (although this estimate will be revised twice more), all while the U.S. unemployment rate in July held steady at its lowest level (5.3%) in seven years. Admittedly, things are far from perfect for the U.S. economy -- but growth is continuing at a steady enough pace that things almost feel back to normal.

As this "new normal" sets in, the Federal Reserve Open Market Committee will have to make some critical decisions in its upcoming meetings to determine what's next for the American economy. With multiple tools at its disposal, the most likely course of action in the coming months -- and one that Wall Street and investors have expected for a while -- is a hike in the federal funds target rate, or the overnight rate that banks charge when lending to one another.

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Keith Kaplan

CalBRE #01933707
Sothebys International Realty
9255 Sunset Blvd.
West Hollywood, CA   90069

keith.kaplan@sothebyshomes.com

310-646-7791

 

 

 

 

 

 

 

 

 

 

 

 

 

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