The Federal Reserve is set to raise interest rates. Although certainly an outlier in the global game of central banking (i.e. most central banks are lowering rates right now), the American central bank isn’t alone to be considering raising rates relatively soon. The Bank of England also has it on their agenda. To some economists, the fact that the U.S. and British central banks are considering rate increases is odd. The economies in both are reasonably strong, but employment, wages, and other Main Street economic indicators are not in overheating territory. Additionally, inflation in both countries is basically 0. The most recent reading out of the U.S. was +0.1% year-over-year. In Britain, the similar figure is flat over the prior year. Even when looking at core inflation, both are nowhere near a 2% threshold. So, the likelihood that the Fed and the Bank of England are set to raise rates is somewhat confusing. What could they be looking at that makes them so concerned about increasing the cost of borrowing right now? The best answer anyone has come up with (so far) is stock... More