CONTACT: GEORGE MCCRORY
100 Old Public Library
Iowa City IA 52242
(319) 384-0012; fax (319) 384-0024
Release: June 30, 1999
Interest rate increase and stock markets
Reporters and editors looking for commentary on the Feds discussion
of raising the interest rate and the consequent impact on U.S. stock markets
may contact the following University of Iowa expert:
Anand Vijh, associate professor of finance, can be reached at
Vijh says an interest rate hike has already been built into recent stock
prices and there will be little immediate impact on markets.
"But if there is a subsequent increase in rates, stock prices will go
down," Vijh said. He added that investors will be looking at corporate earnings
reports in coming weeks.
"Next quarter's earnings could be better than investors are expecting.
Normally, this time is called 'confession season' when companies express low
earnings, but this season could be a good one. However, some stocks are also
priced at high levels," Vijh said.