Tag: bond markets
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Fed no longer foresees a U.S. recession — and other things we learned from Powell’s press conference
[ad_1] The Federal Reserve on Wednesday raised its benchmark interest rate to a range of 5.25% to 5.5%, the highest level in 22 years, in order to combat “elevated” inflation. With financial markets and economists widely expecting that rate move, the focus was on Fed Chair Jerome Powell’s one-hour session with reporters, which followed. Here…
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Opinion: Fed officials were slow to fight inflation. Now they may be too easy on it.
[ad_1] Political pressures on the U.S. Federal Reserve and President Joe Biden’s economic agenda have delivered a painful blow — inflation still above the Fed’s 2% target, high interest rates and declining living standards. COVID-induced supply chain disruptions can be blamed for about half of the surge in inflation that began in early 2021. Most of the…
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Opinion: How you feel about the market matters more than the stocks and bonds you like
[ad_1] Seventy-one years ago, Harry Markowitz revolutionized how individuals and institutions invest by drawing attention away from individual security selection and focusing it on portfolio construction more broadly. To Markowitz, which stock a portfolio held mattered far less than the mix of stocks, bonds and other broad asset classes. Moreover, long-term benefits could be gained…
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Stock market strategist David Rosenberg gives the Fed no credit — and no mercy
[ad_1] It’s said that you don’t know an economy is in a recession until it’s in one. Or as David Rosenberg puts it: “Recessions are like an odorless gas. They sneak up on you.” These days, Rosenberg is looking for fresh air. A former chief North American economist at Merrill Lynch and now president of…
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Treasury yields fall after soft European data
[ad_1] Bond yields fell on Monday after weak economic data from Europe and as traders await central bank policy decisions this week. What’s happening The yield on the 2-year Treasury TMUBMUSD02Y, 4.824% slipped by 2.1 basis points to 4.837%. Yields move in the opposite direction to prices. The yield on the 10-year Treasury TMUBMUSD10Y, 3.800%…
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Financial markets are upside down, says Morgan Stanley, and investors can take advantage
[ad_1] The reweighting of the Nasdaq 100 and the expiration of some $2 trillion worth of options is out of the way. Now it’s time for an onslaught of earnings, as well as rate decisions from the Fed, European Central Bank and Bank of Japan, before the summer really gets into sleepy territory. It feels…
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Everyone thinks Fed’s rate hike next week will be the last one — except the Fed
[ad_1] Wall Street economists seem convinced that the Federal Reserve will raise its benchmark interest rate by 25 basis points Wednesday and that this increase will turn out to be the final hike of this cycle. But they also don’t expect to hear Fed Chair Jerome Powell say so, at least not yet. “While we…
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Stocks are making a run for record territory. Will the Fed end its rate hikes anyway?
[ad_1] Stocks have been closing in on record territory, which isn’t supposed to be a key worry of the Federal Reserve. But after a dizzying three years of pandemic extremes, the stock rally has become a source of market angst, right as the Fed attempts a final chapter in its epic rate hiking saga. “There…
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Are we still going to have a recession? Maybe next year.
[ad_1] A U.S. recession is still possible, economists say. They’re just not entirely sure when. “I think that a gradual slowdown will still result in a recession,” said senior economist Ben Ayers of Nationwide. “The timing of this is highly difficult to pin down.” Ayers is far from alone. Many Wall Street economists think a…
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U.S. bank lending falls slightly in latest week
[ad_1] The numbers: Commercial and industrial lending — a key driver of economic activity — fell by $2.1 billion to $2.75 trillion in the week ending July 12, the Federal Reserve said Friday. C&I loans hit a peak of $2.82 trillion in mid-March, right before the collapse of Silicon Valley Bank, and the pace of…