Everybody knows interest rates will move higher, but when?
Inflation could push long rates higher as soon as this spring and summer. But Bernanke and the new FOMC won’t tip their hand on short-term rates. Fortunately, we can look at the Fed Funds futures to see what the smart money is saying:
Implied Yield on 30-day Fed Funds futures contract
July 2011: 0.18%
January 2012: 0.42%
July 2012: 0.97%
January 2013: 1.67%
Best guess right now on the first Fed interest rate hike is the January 2012 meeting.
More of my interest rate analysis at bestcashcow.com, savingsaccounts.com and greenbankreport.com.
Clark Schultz Blog 