The Federal Reserve’s highly anticipated 25-basis-point rate hike will be announced in the coming weeks. In fact, it’s already been baked into the fixed-income markets.

A Rate Hike Is Already Baked In

Under the helm of Janet Yellen, the Federal Reserve Chair, the Fed’s calculating approach has been to manage expectations well in advance. As a result, given her recent comments and those made by other board members, the next moves will likely mirror the Fed’s actions in 2015.

Once announced, I do expect the short-term fixed income markets to settle down. I also foresee an immediate jump in lending rates with a very small increase in deposit rates.

A Rate Hike Is Already Baked In

At three+one, we are not a bank or investment advisor. Our expertise is determining the time horizon of an entity’s operating and non-operating cash and its value in the marketplace.

Keep in mind that every single dollar that sits idle is a lost opportunity to increase your income. Given the upcoming actions by the Fed, your cash will have greater value in 2017 than it has had over the last 10 years.

Now is the time to have three+one conduct a liquidity analysis so you can maximize the value of each dollar in the coming year.

 

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We Hope to See You at Our Upcoming Presentation:

Northeast GFOA Holiday Seminar – December 13th in Troy, NY
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