U.S. inflation is not yet tamed and the U.S. Federal Reserve is more likely to raise interest rates than cut them if any change is needed, Fed chair Jerome Powell said in a 9 November speech to a conference of the International Monetary Fund.
Tag: interest rates
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HIGH INTEREST RATES THREATEN TO SPARK RECESSION
On 23 October, the yield on the 10-year U.S. treasury bond broke up through 5 percent for the first time in 16 years. On 27 October, the average national interest rate on a 30-year, fixed-rate home mortgage topped 8 percent, according to Bankrate. The average credit card interest rate has reached 22 percent, the U.S. Federal Reserve reported.
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INVESTORS BETTING THAT FED WILL NOT RAISE INTEREST RATES
At the last meeting of the U.S. Federal Reserve’s rate-setting Open Market Committee, a majority predicted the central bank would need to hike rates again when it meets at the end of this month.
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HIGHER INTEREST RATES CUT DOWN CONSUMER BORROWING
Americans reduced their outstanding non-revolving debt, such as auto and student loans, by $30.3 billion in August, according to U.S. Federal Reserve data. The figure represents a 9.8-percent reduction over the previous 12 months.
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ECONOMIC UPDATE – MARKET OVERVIEW
In one of our Top Trends for 2023, we warned of a Middle East Meltdown. Since that time, as we have reported extensively and now it is right in front of everyone’s eyes, the Middle East is melting down.
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FED’S INTEREST RATE STRATEGY PUTS LEVERAGED LOANS AT RISK
Many companies with special needs for cash or less-than-perfect credit profiles borrowed when interest rates were low to keep their financial houses in order. Now that the U.S. Federal Reserve has not only raised rates but also has vowed to keep them aloft for as much as another year or more, those companies are increasingly at risk.
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INVESTORS FINALLY BELIEVE FED’S TOUGH STANCE ON RATES
The U.S. Federal Reserve’s message that it will not cut interest rates any time soon has finally convinced investors.
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TURKEY RAISES KEY INTEREST RATE BY 5 POINTS AT ONCE
On 21 September, Turkey’s central bank hiked its key one-week repo interest rate by a whopping five percentage points to 30 percent, matching economists’ forecast in a FactSet poll.
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DOLLAR CLIMBS AS INVESTORS SEE HIGHER RATES AHEAD
Last week, the dollar rose to six-month highs against the euro, pound, and yen after U.S. Federal Reserve officials said the bank expects to keep interest rates higher longer than they had earlier predicted.
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FED LETS RATES STAND WHILE DEBATING A NOVEMBER HIKE
The U.S. Federal Reserve’s Open Market Committee did not raise rates when it met last week, leaving them at 5.25 percent for deposits and 5.5 percent for loans, both at a 22-year high.