Economist predicts the Federal Reserve will raise interest rates today
An economist says he expects the Federal Reserve to raise interest rates Wednesday, which could increase the demand for credit for producers.
Creighton University’s Ernie Goss tells Brownfield short term rates will increase by three-quarters of a percent. “For farmers that are going to purchase land and agricultural equipment and of course input prices have been rising and will continue to rise and that’s going to push farmers to increase their borrowing in the weeks and months ahead.”
And, he says, there will be a hike in long term interest rates from the Federal Reserve. “They have a lot of U.S. treasury bonds and mortgages. They’re going to allow those bonds to mature. That’s going to put upward pressure on long term rates. Farmers are going face higher interest rates on long term rates and short-term rates, but I think that growth is going to end.”
The Federal Reserve is meeting Tuesday and Wednesday and is expected to announced the rake hike Wednesday.