The Fed Cut, So Rates Rose?

Chart of the Week for November 15-21, 2002

Interest rates for issues maturing within two years fell after the Fed lowered rates last week. Interestingly, rates for issues with longer maturities actually rose from a month ago. Short-term rates are more heavily impacted by the Fed’s actions, while long-term rates are also affected by other variables, such as long-term economic forecasts, inflation risk and liquidity premiums.

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