Tag: interestrates
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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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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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Growing ‘debt divide’ in the U.S. sees some pulling ahead as others fall further behind
[ad_1] Some Americans are racking up debt even as others are paying theirs off, creating a debt divide among the U.S. population. ****Among U.S. adults who have personal debts, more than 4 in 10 say the amount they currently owe is close to its lowest level ever. But more than 3 in 10 are in…
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Opinion: The Fed’s mission impossible: Drive the economy from the back seat
[ad_1] The U.S. Federal Reserve is talking up rate-hike expectations even when inflation and threats to inflation are slowing markedly. Investors should recognize that the Fed has a poor forecasting record and officials are likely to relent on their hawkish rhetoric as inflation subsides. In 2013, then-president of the Minneapolis Fed, Naryana Kocherlakota, used a pithy…
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Opinion: The expected recession hasn’t arrived, but higher inflation is sticking around
[ad_1] U.S. headline CPI inflation has had an impressive surge and an equally impressive reversal. Are Americans heading back to the good old days of persistent low inflation? Unpacking the trends in CPI and their causes suggests not, with important implications for all of us in the real economy. The rapid decline in headline inflation…
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Opinion: A mild global recession is coming, Nouriel Roubini says.
[ad_1] There are currently four scenarios for the global economic outlook. Three of these entail potentially serious risks with far-reaching implications for markets. The most positive is a “soft landing,” where central banks in the advanced economies manage to bring inflation back down to their 2% targets without triggering a recession. There is also the…
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The stock market has already absorbed the Fed’s interest-rate pause
[ad_1] Federal Reserve pauses have surprisingly little significance for U.S. stock market investors. I’m referring to the Fed’s recent decision not to raise rates, after having increased them in each of its 10 previous meetings. It is being referred to as a “pause” because of the widespread expectation that the Fed will resume raising rates…
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Opinion: The Federal Reserve is in a deep hole — and it has only itself to blame
[ad_1] One might think that predicting the U.S. Federal Reserve’s next policy moves would become easier now that the U.S. central bank has already hiked interest rates 10 consecutive times, for a total of five percentage points. Not so fast: I suspect that few, if any know for sure what the Fed will do at…
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Bond holders have more to fear from the Fed than the debt-ceiling standoff
[ad_1] The U.S. debt-ceiling drama on Capitol Hill makes for great theater, but is little more than a sideshow for bond investors. That’s because the shorter-term direction of U.S. interest rates is almost entirely a function of the Federal Reserve’s actions, and not the debt-ceiling negotiations in Washington. Yet judging by the saturated coverage of…