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My guess is that the interest in my fixed income account will probably continue to go up as Greenspan increases interest rates (probably to 8%), and I would be happy with these returns.

In a fixed income account the worse thing that can happen is a rise in interest rates. YOur interest payments rate of interest rate yield may go up but your net asset goes down. Unless the fixed income account is a money market mutual fund
Example if you are getting 7% interest now and interest rate rise you will not get the raise as quickly, in fixed income investment. If the fixed income investment is money market fund then you will see interest payment increase but if its a bond or bond mutual fund you may not. And the net asset value in the latter two will go down.
But let me add that when interest rates go up the value of your money might appear to be raising but its not. The cost of items that you purchase with the money is going up. For example, if you need to purchase a car, cost to borrow just went up.
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