How long they can hold rates down is the big question, as the market can eventually over-rule the Fed and push rates up significantly irrespective of what the Fed says or does.
The Wall Street Journal had an article in the Money and Investing section today about the threat of inflation. The arguments for future inflation appear to be a lot stronger than those against it, despite what the Fed is telling us.
The Wall Street Journal focused on certain stocks and inflation protected bonds as inflation hedges, but they did not illuminate one of the historically best inflation hedges: Real Estate. Once again, if you have “fence-sitting” clients, a cash flowing real estate investment makes an excellent inflation hedge. This is especially the case in light of the extremely low fixed rates available right now.
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