Interest rates at the end of December 2010?
Here is what the financial markets are saying what the short term Federal Funds Rate (commonly known as the ’short term interest rate’) will be in December 2010. For those that don’t know how to read these numbers, it is calculated as 100 minus the interest rate (in percentage), so a rate of 97.5 would infer a 2.5% interest rate.
I got a fill on March 31st and April 1st, so time will tell whether this will be a good bet or not. It could very well be likely that the fed will keep the rates at zero indefinitely (in practice it’s closer to about 0.17% right now), but if in early 2010 the economy picks up a bit of steam, the Federal Reserve will want to load a few bullets in its revolver by raising rates a few notches.