At noon EST tomorrow, December 15, the Fed will raise its rate for the first time since June 29, 2006. A lot of your clients have retired since, or were in school then. No matter how much you have heard about the Fed’s pending “liftoff,” your clients will be alarmed by all the yelling.
At midday on December 16, the Fed will begin a tightening cycle, raising the overnight cost of money — the Fed funds rate — for the first time since 2004. Finance professionals in their thirties have had no firsthand experience with the event. This will be the ninth such cycle since 1955. The most important thing: how long (oh Lord), how long.