Newswise — Dean Johnson is a stock market and investments expert and professor in Michigan Technological University's School of Business and Economics. He founded and led a student investment team managing more than $1 million in the financial markets. Three times this program has won an international investment competition. In recognition of their success, Dr. Johnson and his students opened the Nasdaq Stock Exchange, featured on national television and in Business Week.
About the Feds raising the interest rate, he says:
"The irony of the interest rate hike is that big banks will benefit from wider net interest margins. While the market was fully expecting the Fed to act, the effects of their action will not be uniform across the economy. The higher cost to borrowers will be seen in the short run. The higher benefit to savers - especially individuals in retirement - will only be seen in the longer term."
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