By Mike Miles
December 14th, 2012 | Uncategorized
Q. Does the Fed’s announcement that it will not raise interest rates until unemployment reaches a specific target make the Thrift Savings Plan F Fund more attractive in the near term?
A. To the extent that it reduces the probability that market interest rates will rise, it reduces the F Fund’s downside risk. With interest rates near zero, and most outstanding bonds trading at a premium, I’m not sure that I’d call the F Fund particularly attractive, however.
Comments are closed.