Believing that the U.S. Federal Reserve has completed its campaign of interest rate hikes, investors are buying corporate bonds at the fastest clip since July 2020, the Financial Times reported.
Tag: Federal Reserve
What a difference a month makes. The U.S. equity market continues its November spike.
On 1 November, the U.S. Federal Reserve announced it will continue to hold its key interest rates steady at 5.25 percent on deposits and 5.5 percent on loans. The Fed has not changed the rates since July.
Last week the Federal Reserve began a new phase of currency and debt manipulation on an unprecedented scale. And as a result, the U.S. stock market had its best week in terms of gains for the year.
The U.S. Federal Reserve’s high interest rates, abetted by inflation, are keeping U.S. mortgage interest rates above 7 percent.
As the U.S. Federal Reserve did a day earlier, the European Central Bank (ECB) added a quarter point to its key interest rate on 27 July, bringing it to 3.75 percent. It began raising the rate in July 2022, when it was -0.50 percent.
On 26 July, the U.S. Federal Reserve’s Open Market Committee voted unanimously to add another quarter point to its interest rates, raising them to 5.25 percent on deposits and 5.5 percent on loans, their highest since 2001.
Analysts and investors are coalescing around the view that the U.S. Federal Reserve has tamed inflation without knocking the U.S. economy into a recession—creating a “soft landing”—and will end its series of interest rate increases, perhaps as soon as next month.
All 11 voting members of the U.S. Federal Reserve’s Open Market Committee agreed to defer an interest rate increase in June’s meeting, the session's newly-released minutes show.
Jerome Powell, chair of the U.S. Federal Reserve, and Bank of England governor Andrew Bailey both signaled that they expect, and support, moves by their banks to continue raising interest rates.