Connect with us

Hi, what are you looking for?

Jewish Business News

Financial Research

Fed Rate Hike Will Be Taken in Stride, S&P Dow Jones’ David Blitzer Says

David Blitzer

Many financial market participants are concerned that when the U.S. Federal Reserve begins raising interest rates, stocks and bonds will plunge and the dollar will soar, wreaking havoc on the economy and investors, said.

But investors can relax a bit, said David Blitzer, chairman of the Index Committee for S&P Dow Jones Indices. “A glance at the last two times the Fed shifted from easing to raising rates suggests that these fears are misplaced, ” he said in a posting on his firm’s website.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at
Thank you.

As Federal Reserve Bank of Boston President Eric Rosengren explained last week, “even with some unusual market conditions, the Fed’s shift shouldn’t send markets into turmoil, ” Blitzer said.

“The last two Fed tightening moves began in February 1994 and in June 2004. Both were taken in stride in the economy, the stock market and the foreign exchange markets”, he added.

This time around, economists expect the Fed to begin increasing rates around mid-year. The central bank has kept its federal funds rate target at a record low of zero to 0.25 percent for six years, said.

“The initial Fed move isn’t likely to cause massive damage. However, the Fed’s first step will probably be followed by further tightening and the cumulative effect will grow. For investors the message of the data is not to panic at the Fed’s first tightening move, but not to ignore it either”, Blitzer said.



You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...


The Movie The Professional is what made Natalie Portman a Lolita.


After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.