Over Half of Surveyed Investors Agree With The Fed’s Rate Decision


This week’s Sentiment Survey special question asked AAII members whether the Federal Open Market Committee was correct in keeping interest rates unchanged at its June meeting. More than half of respondents (56%) said the Fed was correct not to raise rates. Slow domestic economic growth and global uncertainty—including today’s Brexit vote—were the primary reasons given why. About one-third of respondents (34%) disagreed, saying the Fed should have raised rates. Many of these members think rates should be moved back to more normal levels and/or that ongoing monetary policy is hurting savers.

Here is a sampling of the responses:

  • “They are correct because the economy is fragile and the rates increases will slow down everything.”
  • “They are right because of world conditions and uncertainty.”
  • “Even a small increase, like 0.25%, is better than getting nothing on money market accounts.”
  • “Incorrect. They should have normalized rates long ago.”
  • “No change is correct now, but the Fed erred in failing to raise rates 18 months ago.”

Want to weigh in? Take the survey yourself and see results online at http://www.aaii.com/sentimentsurvey.

If you want to become an effective manager of your own assets and achieve your financial goals, consider a risk-free 30-day Trial AAII Membership.


Leave a Reply

Your email address will not be published. Required fields are marked *