Federal Reserve officials are signaling that they are on track to start slowly raising interest rates next year, a shift that means a delicate balancing act for investors, The Wall Street Journal reported yesterday. Many portfolio managers expect stocks to continue to perform well for the next few months, due to an improving economy and low rates. The Dow Jones Industrial Average is up 2.6 percent for the year, following last year's 26.5 percent advance. Stocks have largely shaken off concerns about how the market will do without the Fed's monthly stimulus, which is due to end in October and has been seen as supporting asset prices. However, money managers are increasingly on guard should the Fed suddenly decide to accelerate its timetable for boosting short-term interest rates, which have been near zero since December 2008. Most investors expect the Fed to take a deliberate approach to raising rates.
