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Big rise in rates is unlikely anytime soon

Q

What are your thoughts on rates going up and the impact on long munis?

J.C., California

A

James A. Klotz responds:

With the backdrop of a sluggish economy and persistently high unemployment, we don’t foresee the threat of inflation any time in the near future.

If there is no inflation problem, there should be no significant upward movement of interest rates.

Jan 7, 2013

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