Interest Rates

Fed Chief Yellen Expects Three Rate Hikes Annually Through 2019

The Federal Reserve expects to raise rates three times a year for the next two years as the U.S. economy continues to recover from the worst financial crisis since the Great Depression, moving closer to full employment and 2% inflation, Federal Reserve Chief Janet Yellen said on Wednesday.<p>Yellen’s …

Central Banks

El-Erian Says Yellen Remarks More Dovish Than He Was Expecting - Bloomberg

Mohamed El-Erian, Allianz SE’s chief economic adviser, said Federal Reserve Chair Janet Yellen took a less aggressive stance than he thought she …

Janet Yellen

Further Points On The Bond Bull-Bear Fight (Part 2 Of 3)

In this second part of a three-part series, a focus on demographics as a possible driver of continued low interest rates is presented.<p>The possibility …

Investing

The Fed is turning more dovish

The Federal Reserve has yet to officially update its roster of voting members/interest-rate setters on this year's Federal Open Market Committee, but that doesn't mean readers shouldn't get a sneak peek.<p>First, some background. Not all Fed officials are created equal. Washington-based board …

Central Banks

One Big, Fat, Ugly Bubble

The establishment is setting up Donald Trump.<p>The mainstream media hates him. Hollywood hates him. The “Intellectual Yet Idiot” academia class hates …

Economics

High-Yield Midstream MLPs Perform Well During Periods Of Rising Interest Rates And Inflation

All was well with equity yield instruments until interest rates and inflation ascended in mid-2016.<p>Interest rates sensitive equities began to react …

Investing

Pro-Growth Fiscal Policies Will Help Main Street But Hurt Wall Street

Donald Trump's election accelerated the worldwide shift from globalism to nationalism.<p>Pro-growth fiscal policies will end the Fed's policy of …

Investing

The Great Euro Experiment

In 2002 the euro currency replaced other European currencies.<p>A trend towards globalism for fourteen years.<p>In 2016 everything changed.<p>The euro is …

Euro

Central Banks In SFC Models

Central banks are often a feature of economic models, including stock-flow consistent (SFC) models. The role of the central bank is to supply money, …

Central Banks

Increases in Interest Rates on Savings Accounts Remain Slow to Materialize

Savers hoping for higher interest rates on deposit accounts are probably going to have to wait awhile longer for yields on their savings to move upward.<p>While the Federal Reserve decided in December to increase short-term interest rates, that hasn’t yet translated into significant increases in …

Personal Finance

What the Banks Have to Say About Your Money After Inauguration Day

The Presidential Inauguration is upon us, and the question remains of what will happen to our money, and our portfolios in 2017. Most banks put out an annual report about their 2017 Global and Domestic outlook for the year. Among the domestic reports, it seems the themes are more or less the same …

Investing

Inflation dilemma threatens to spoil ECB wish for a boring year

Mario Draghi wanted to become boring in 2017. He may not be so lucky.<p>As the president of the European Central Bank heads into what he hoped would be …

Economics

Don't Count Out TIPS as the Hedge for a Bear Bond Market

The market for Treasury Inflation-Protected Securities has had plenty of critics since the U.S. government began offering the bonds 20 years ago. The naysayers say the securities lack liquidity, don’t have broad appeal or are too costly for the Treasury Department to issue.<p>Now, their reputation may …

Wall Street

Trump, Policy, Markets

As Don Rissmiller of Strategas Research Partners succinctly points out, "There are four types of government policy that can be used to steer the …

World Economy

Capital Group CEO says post-Trump change in markets is real

Global markets are on the cusp of a new era of faster economic growth, rising interest rates and higher inflation, according to the head of Capital …

Wall Street

Brexit pledge, ECB meeting temper euro zone bond rush

LONDON (Reuters) - Euro zone bond yields bounced off two-week lows on Tuesday after Britain said it would hold a parliamentary vote on the terms of its exit from the European Union and focus shifted to an ECB meeting that could shed light on divisions between policymakers.<p>British Prime Minister …

Euro

Draghi Bingo Is ECB Watchers’ Game as Stimulus Pumps Up Prices - Bloomberg

As economists watch the European Central Bank inject three-quarters of a trillion euros into the financial system this year, they can while away the …

Business

Trump Trap

What do you guys think of this video? If you can get past the echoey dictation – sounds interesting to me.President Trump – The Trap is SetThe Trump …

World Politics

Supreme Court rejects banks’ bid to quash rate-rigging suits

The Supreme Court scuttled Wall Street’s last chance to derail a flurry of class-action lawsuits against banks over the rigging of one of the world …

Wall Street

The Mad Scientists Of Monetary Policy: The War On Cash

<i>By Ron Rimkus, CFA</i><p>When we talk about finance, it often becomes so abstract that it loses all relevance to our everyday lives. That's a problem. I …

Banking

One in five homeowners will struggle with rate rise of less than 0.5%

Fixing your mortgage now could beat the banks0:55<p>The secret to getting the most out of your fixed mortgage is in the timing.<p>2 months …

Budgeting

Home loan rates heading higher as funding costs rise, competition eases

Mortgage rates are set to rise for both fixed and variable rate borrowers this year as global interest rates shoot higher, competition eases and …

Banking

Rapid Money Supply Growth Does Not Cause Inflation

<i>By Richard Vague</i><p>Monetarist theory, which came to dominate economic thinking in the 1980s and the decades that followed, holds that rapid money supply …

Economics

The bond market is shifting, so steady yourself

The forces that rejuvenated the stock market late last year have changed the profile of the fixed-income market.<p>Heading into the fourth quarter, for example, funds that invest in long-term government debt had been up more than 13 per cent for the year as investors favored relatively safe bets on a …

Investing

What Fed policymakers are saying about possible Trump fiscal stimulus

Since the Federal Reserve’s policy-making Federal Open Market Committee (FOMC) raised interest rates by ¼ percentage point on Dec. 14, several FOMC …

Central Banks

Bundesbank buys bonds yielding less than depo rate for 1st time -traders

Jan 16 Germany's central bank bought bonds yielding less than the European Central Bank's deposit rate for the first time on Monday, traders said, a move that follows wide-ranging changes to the ECB's quantitative easing scheme this month.<p>Two traders with knowledge of the transactions said the …

Greece

Fed’s Williams Sees Gradual Rate Hikes to Keep Economy on Track - Bloomberg

Further gradual Federal Reserve interest-rate increases are warranted to keep the U.S. economy on a sustainable course and avoid excess inflation or …

Inflation

Interest rates could go in either direction to keep economy on even keel, Carney says

Mark Carney has suggested interest rates could go up or down as the Bank of England strikes a difficult balance between supporting growth and managing inflation.<p>He said monetary policy could respond, in either direction, to changes in the economic outlook to ensure that inflation hovers around the …

Business (UK)

Best India Bond Run Since 2003 Drives Strategists to Caution - Bloomberg

It’s getting increasingly hard for strategists to stay bullish on Indian bonds after the longest rally since 2003.<p>Even as a banking system awash with …

Business

For Dedicated Bond Holders, It's Time To Up Your Risk Profile

After the recent Federal Reserve rate rise, interest rates are set to rise.<p>After Donald Trump's election, tax cuts and deregulation should spur …

Investing