Two-Thirds of Investors Approve of Fed Keeping Interest Rates Unchanged

This week’s Sentiment Survey special question asked AAII members what they thought about the Federal Open Market Committee’s (FOMC) decision to leave interest rates unchanged. Nearly two-thirds of respondents (64%) agree with the FOMC’s voting members or otherwise thought that not making a change was the right thing to do. Some of these respondents think rates should be held at current levels and/or that no change was warranted given the current data. Slightly more than 10% of respondents think the FOMC should have raised rates. Approximately 6% say their investing strategy is not influenced by monetary policy.

Here is a sampling of the responses:

• “Good decision. With inflation nonexistent, there is no reason to raise the rate right now.”
• “I agree that the Fed should stay neutral for the foreseeable future.”
• “It sounds to me like they are not very sure of things.”
• “I don’t buy investments based on what the Fed does with interest rates.”
• “I think they should have gone up a quarter of a point to keep inflation in check and to give people living on interest and bonds a little wiggle room.”

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