- The prospects of many interest rate increases by the Federal Reserve has roiled the financial markets. This can be a buying opportunity.
- Federal Reserve Chair Powell would probably like to have a "one and done" rate hike in March, given that 2022 is a midterm election year.
- Absent the $1.6 trillion reverse repo facility maintained by the Federal Reserve, short-term risk-free interest rates would now be negative.
- Massive Federal pandemic relief programs effectively reduced taxes on the middle-class, which brought the Federal income tax back to a level of progress last seen in 1969.
- The consumer spending support provided by the Federal pandemic relief programs have ended and are not likely to be renewed.
For further details see:
MVRL: 15% Current Yield And May Have Less Risk Than Some Think