Manage Debt Well, says Fed Rep

January 26, 2010 06:00 PM
 

Linda H. Smith, Top Producer Business and Marketing Editor
 
Tweets from Top Producer
TopProducerMag: "In general, ag lending remains robust. Bankers have stepped up to the plate,” says Jason Henderson, KC Federal Reserve Bank at #TPSeminar  
 
TopProducerMag: "Looking at financial markets, we know there will be waves of foreclosures coming,”says J. Henderson, KC Federal Reserve Bank at #TPSeminar
 
TopProducerMag: "Now what we've seen is that financial markets have eased,” says Jason Henderson, KC Federal Reserve Bank at #TPSeminar
 
TopProducerMag: "We've had an extreme financial crisis,” says Jason Henderson, KC Federal Reserve Bank at #TPSeminar
 
TopProducerMag: "We are on a recovery, it just doesn't feel like it," says Jason Henderson, KC Federal Reserve Bank at #TPSeminar
 
The Federal Reserve Bank announced today it will keep short-term rates near zero to support the fledging recovery. However, with that recovery started it is not a question of if but when, how high and how fast rates will rise, Jason Henderson, Kansas City Federal Reserve Bank, Omaha Branch executive, told attendees at the Top Producer Seminar.
 
He pointed to the Fed's balance sheet, which soared from $800 billion to $2.3 trillion over the course of the recession. "Unraveling the holdings will be a balancing act,” he said. Ultimately, at the end of the day, we'll see higher rates.”
 
As the economy picks up steam, inflation and more costly credit are highly likely. Henderson offers the following advice to farmers and ranchers who want to prepare for that day: "Manage debt well: Keep debt levels low, build or maintain equity and make prudent investments. That doesn't mean to let opportunities slip by, but approach them with some caution.”
 
 
You can e-mail Linda Smith at lsmith@farmjournal.com.
 

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