ECB Raises Interest Rate Again

Click for the story at the BBC

Federal Reserve Headquarters Building

Federal Reserve Headquarters Building

It has to happen sometime. Federal Reserve interest rates have been at historic lows for several years, with 30 year fixed rate home mortgages available at terms not seen in the U.S.A. since the early 1970′s. Libor and other business lending rates have also been remarkably low. But today’s news that the European Central Bank has raised its lending rate could foreshadow a corresponding period of rising Federal Reserve interest rates.

If (or when, actually) that happens, it will be important for investors to position their portfolios accordingly. For advice on how best to prepare for rising Federal Interest rates, consider the information at this Investopedia article.

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