On Wednesday, Federal Reserve Chairwoman Janet Yellen announced that the Fed will continue to raise rates and start paying down its immense bond portfolio.
CME Group CEO Terry Duffy explained why the Federal Reserve has caused “frustration” and “confusion” in the market place.
“I think the market is a little frustrated with what the Fed has said over the last several years. The Fed said they wanted to see certain economic factors happen including unemployment, a lot of those factors were in the marketplace including unemployment and no inflation and the Fed still did not move rates, that confused the market,” he told FOX Business’ Neil Cavuto.
Duffy also described how interest rate policies have impacted investors.
“One of the reasons people are chasing the market maybe a little bit is not because of tax policy or not because of health care policy, it’s because of interest rate policy. Nobody can invest in fixed income anywhere around the world that doesn’t have huge risk outside of Greece and some of the other countries. But in some of the industrialized nations the rates are so low, so you have to go into the marketplace in order to get some kind of a yield,” he said.