I think the bottom right now is perhaps about 5-3/4 percent and that is contingent on further weakness in East Asia that adds to uncertainty regarding the U.S. economy in 1998.
We have some hint that the tax rebate program just might be able to pull the economy out of its funk,
The credit market right now is bracing for some bad news. Yields should continue heading higher until the U.S. economy slackens appreciably.
Don't rush out to buy long-term bonds as rates are rising unless you're convinced that the economy is going to slow significantly.
This could mark a turning point. After all, the Fed was right, the latest slowdown was temporary and the economy is about to gain speed going into the second half of 2005, which would imply that more rate hikes lie ahead.
The economy is doing better, but where is profitability?