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Keyword: interestrates

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  • Twenty-year Treasury bond will add to $25 trillion U.S. debt pile

    05/20/2020 4:14:23 AM PDT · by Oldeconomybuyer · 2 replies
    Reuters ^ | May 20, 2020 | by Saqib Iqbal Ahmed
    NEW YORK - Investors expect robust demand for the Treasury Department’s new $20 billion issue of 20-year bonds, set to launch Wednesday, from U.S. institutions, foreign investors and other market participants. The government’s borrowing needs have jumped dramatically in recent weeks, after Congress authorized trillions in spending to fend off an economic hit from the coronavirus pandemic, which has slammed U.S. growth. The U.S. plans to sell a total of $54 billion of the 20-year bonds over the next three months. The Treasury said earlier this month it intends to increase auction sizes across all nominal coupon tenors over the...
  • Negative interest rates, explained — and how they could turn the world of banking upside down

    03/21/2020 10:38:28 AM PDT · by ConservativeMind · 43 replies ^ | March 20, 2020 | Sarah Foster
    What are negative interest rates? A negative interest rate is exactly how it sounds — it’s when an interest rate (or a yield) falls below 0 percent. It seems counterintuitive. After all, how can a rate actually fall below zero, a number that’s literally meant to be a floor for traditional borrowing and lending activities? Take Germany, for example. Its government bond yields are trading in the negative territory all the way out to 20 years. Bond yields are negative in France, Denmark and the Netherlands right now, and they were once sub-zero in Belgium. The Riksbank of Sweden, the...
  • Virus spread prompts Fed to slash rates in surprise move

    03/03/2020 7:39:01 AM PST · by Olog-hai · 25 replies
    Associated Press ^ | March 3, 2020 | Martin Crutsinger and Christopher Rugaber
    In a surprise move, the Federal Reserve cut its benchmark interest rate by a sizable half-percentage point Tuesday in an effort to support the economy in the face of the spreading coronavirus. Chairman Jerome Powell noted that the coronavirus “poses evolving risks to economic activity.” It was the Fed’s first rate cut since last year, when it reduced its key short-term rate three times. It is also the first time the central bank has cut its key rate between policy meetings since the 2008 financial crisis and the largest rate cut since then. […] The group of major industrial countries,...
  • The Economy's Unsung Hero Is Low Interest Rates

    01/28/2020 7:37:57 AM PST · by Kaslin · 8 replies ^ | January 28, 2018 | Stephen Moore
    At the World Economic Forum in Davos, Switzerland, last week, President Donald Trump again talked positively about negative interest rates. That's not a very good idea considering negative interest rates are a warning signal of deflation, which can be as bad for an economy as runaway inflation. But Trump was right to herald this era of low nominal interest rates and inflation. If you want to understand how the Dow Jones Industrial Average has risen from a low of 800 to a high of 29,000 in four decades, look at the Federal Reserve's graph of the 10-year treasury rate showing...
  • It’s Late: So Says the Profits Spread and Leading Indicators

    10/23/2019 7:05:55 AM PDT · by Vigilanteman · 17 replies
    Charles Schwab Insights ^ | 21 October 2019 | Liz Ann Sonders
    Key Points •Third quarter earnings season is underway, so it’s time to look under the hood. •A wide gap between S&P 500 profits and the broader NIPA measure from the BEA supports a late-cycle view. •The late-cycle view is also supported by weakening leading indicators.
  • Everything you need to know about negative interest rates

    09/20/2019 8:00:30 AM PDT · by SeekAndFind · 12 replies
    Christian Post ^ | 09/20/2019 | Chuck Bentley
    Dear Chuck, I can’t wrap my head around negative interest rates. What does this mean for my savings accounts in the bank? Can you help me figure this out? Confused about Rates Dear Confused,You are not the only one who finds this a challenge to understand. Simply put, it inverts the model that we have known and practiced for years: putting savings (money) in the bank to earn interest not to pay interest!Some History and Bigger Picture Negative interest rates have historically been used to combat deflation. Finance writer Justin Kuepper explains,“...deflation causes people and businesses to hoard cash rather...
  • Trump hammers Fed, Powell for lack of 'guts, vision': Fed cuts rate by a mere 25 basis points.

    09/18/2019 12:32:46 PM PDT · by SeekAndFind · 27 replies
    Yahoo Finance ^ | 09/18/2019 | Javier E. David
    President Donald Trump on Wednesday harshly rebuked the Federal Reserve, accusing the central bank and Fed Chair Jerome Powell of having “no guts” by not meting out a more aggressive interest rate cut as the global economy slows. The Federal Reserve on Wednesday cut interest rates again by 25 basis points to a new target range of 1.75% to 2%, and telegraphed a strong likelihood of one more rate cut by the end of the year. However, some on Wall Street anticipated a more aggressive easing of 50 basis points, particularly with financial markets conditions tightening. Indeed, markets sank to...
  • California advances bill to cap consumer loan interest rates

    09/14/2019 2:10:34 AM PDT · by C19fan · 54 replies
    AP ^ | September 13, 2019 | Staff
    California lawmakers approved legislation Friday to cap interest rates for consumer loans, a measure that supporters say is designed to blunt predatory lending practices. The bill would cap consumer loan interest rates at 36 percentage points above the main interest rate set by the Federal Reserve, which is currently around 2%. Consumer advocacy groups say some loan companies charge interest rates as high as 225%.
  • Negative interest rates? How does that work?

    08/27/2019 7:00:12 AM PDT · by SeekAndFind · 64 replies
    Christian Post ^ | 08/27/2019 | By Gordon C. Boronow
    Over $17 trillion dollars’ worth of global debt is now “earning” an interest rate below 0%. Negative interest rates are infecting developed countries such as Germany, Switzerland and Japan. I read an article recently that said there are negative interest rate mortgages available in Denmark. Just trying to think about negative interest rates makes one’s head explode. From a practical perspective, the mechanics of negative interest rates are clear enough. The borrower guarantees to pay, say, $1000 in a year. The lender then agrees to give the borrower $1020 (for a negative 2% yield) for the guaranteed payment. Voila, negative...
  • Trump Calls On Federal Reserve To Cut Interest Rates

    08/19/2019 10:26:13 AM PDT · by Enlightened1 · 23 replies
    AP via Yahoo Finance ^ | 08/19/19 | MARTIN CRUTSINGER
    President Donald Trump is calling on the Federal Reserve to cut interest rates by at least a full percentage point "over a fairly short period of time," saying that such an action would make the U.S. economy even better and would also "greatly and quickly" enhance the global economy. In two tweets Monday, Trump kept up his pressure on the Fed and its chairman Jerome Powell, saying the U.S. economy was strong "despite the horrendous lack of vision by Jay Powell and the Fed." Powell is Trump's hand-picked choice for the top Fed job. He said Democrats were trying to...
  • Trump hits Federal Reserve As The 'Most Difficult Problem' Facing US

    07/06/2019 9:41:42 AM PDT · by Enlightened1 · 23 replies
    The Hill ^ | 07/06/19 | Jessica Campisi
    President Trump took aim at the Federal Reserve on Saturday, labeling it the “most difficult problem” the U.S. faces and again criticizing the independent central bank for raising interest rates. “Strong jobs report, low inflation, and other countries around the world doing anything possible to take advantage of the United States, knowing that our Federal Reserve doesn’t have a clue!” Trump tweeted late Friday night. “They raised rates too soon, too often, & tightened, while others did just the opposite.” “As well as we are doing from the day after the great Election, when the Market shot right up, it...
  • Remember the price spikes for appliances after Trump’s tariffs?

    06/12/2019 9:47:55 AM PDT · by listenhillary · 27 replies
    Marketwatch ^ | 6/12/2019 | Jeffery Bartash
    (Snip) What’s going on? Economists point to a variety of explanations. The global economy has gotten weaker and the U.S. dollar stronger, making imports cheaper for Americans to buy and lessening the impact of tariffs. The cost of imports excluding foreign oil have fallen almost 1% in the past year. “We are importing deflation,” asserted chief U.S. economist Chris Low of FTN Financial.
  • Despite Mainstream Media Claims: No Doom and Gloom Behind Low Interest Rates

    06/11/2019 4:29:48 AM PDT · by Kaslin · 6 replies ^ | June 11, 2019 | Ken Blackwell
    The stock market is rebounding on the news that the Federal Reserve is considering an interest rate decrease, but some commentators are spinning this as a sign of economic calamity.“We are closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2 percent objective,” Federal Reserve Chairman Jerome Powell said Tuesday.Experts widely interpreted this as an indication that the Fed may soon implement a rate cut after raising rates steadily over the entire course of Donald...
  • AOC and Sanders call for capping credit card interest rates at 15%

    05/09/2019 11:05:26 AM PDT · by Steve1999 · 109 replies
    Washington Examiner ^ | 09-05-19 | Colin Wilhelm
    Bernie Sanders and Alexandria Ocasio-Cortez will introduce legislation to create a national cap on interest rates for credit cards. The Sanders-Ocasio-Cortez legislation would limit credit card annual percentage rates to 15%. Current credit card annual percentage interest rates typically range from the mid-teens to high 20s, depending on a person’s credit score. “Every major religion on Earth ... has condemned usury because it is really disgusting,” said Sanders, a Vermont independent senator who is also a leading candidate in the Democratic presidential primary. “What Alexandria and I are proposing in this legislation is not complicated ... Bringing back the concept...
  • White House economic advisor Larry Kudlow says Fed should still cut rates despite 3.2% GDP growth

    04/26/2019 8:25:49 AM PDT · by SeekAndFind · 34 replies
    CNBC ^ | 04/26/2019 | Michael Sheetz
    The U.S. economy is off to its best start to a year since 2015 and White House economic adviser Larry Kudlow says Federal Reserve should still add stimulus by cutting interest rates. GDP grew by 3.2% in the first quarter, which Kudlow called “a blow out number.” He said the current economy is in a “prosperity cycle” that “is gaining momentum, not losing momentum” “The inflation rate continues to slip lower and lower,” Kudlow told CNBC’s “Squawk on the Street” on Friday. “Even according to the Fed’s own spokespeople, from the chairman on down, that could open the door to...
  • Inverted yield curve puts Federal Reserve interest rate policy in jail

    03/22/2019 7:13:29 AM PDT · by SeekAndFind · 29 replies
    American Thinker ^ | 03/22/2019 | Chriss Street
    The Federal Reserve, facing an inverted yield curve crushing Main Street’s small banks, panicked on March 20 and pledged no more interest rate increases this year. The U.S. central bank’s Open Market Committee voted unanimously to maintain its lending benchmark interest rate in a range of 2.25% and 2.5%. Fed officials stressed to the financial press that they would be “patient and flexible” in the future before making adjustments to the closely followed bank borrowing rate. When President Obama almost created a depression by raising taxes and increasing regulations during a bad recession, the Federal Reserve flooded the U.S. economy...
  • Cashing In: How to Make Negative Interest Rates Work (Central banks plan to steal your savings)

    02/11/2019 8:53:40 AM PST · by bkopto · 25 replies
    International Monetary Fund ^ | 2/5/2019 | Ruchir Agarwal and Signe Krogstrup
    Many central banks reduced policy interest rates to zero during the global financial crisis to boost growth. Ten years later, interest rates remain low in most countries. While the global economy has been recovering, future downturns are inevitable. Severe recessions have historically required 3–6 percentage points cut in policy rates. If another crisis happens, few countries would have that kind of room for monetary policy to respond. To get around this problem, a recent IMF staff study shows how central banks can set up a system that would make deeply negative interest rates a feasible option. In a cashless world,...
  • U.S. Existing Home Sales Are Rapidly Slowing. Nobody Is Quite Sure Why

    01/22/2019 9:05:41 PM PST · by dila813 · 97 replies
    Fortune ^ | Today 7:34 PM EST | KEVIN KELLEHER
    U.S. housing sales, a key pillar of economic growth in recent years, are looking weaker again. Existing home sales declined for much of 2018. In December, according to the National Association of Realtors, sales of single-family homes, condos, and co-ops fell a larger-than-expected 6.4% from the previous month. A Reuters survey of economists projected home sales to decline by a modest 1% in December.
  • Fed Raises Interest Rates Amid Fierce Pushback From Trump, Signals Fewer Hikes In 2019

    12/19/2018 11:35:31 AM PST · by Enlightened1 · 58 replies
    Business Insider ^ | 12/19/18 | Akin Oyedele
    The Federal Reserve on Wednesday raised its key interest rate for the fourth time this year, but signaled fewer rate hikes in 2019 than it had forecast. Americans with credit cards and other short-term loans will soon notice the increase, although banks typically take longer to raise interest rates for savers. The hike came amid criticism from President Donald Trump, signs of an economic slowdown, and stock-market volatility. The Federal Reserve on Wednesday raised its benchmark interest rate as had been widely anticipated and signaled fewer rate hikes in 2019 than it had forecast. The Fed's statement was expected to...
  • Time for a Fed Pause

    12/18/2018 5:56:33 AM PST · by Moonman62 · 7 replies
    WSJ ^ | 12/18/18 | The Editorial Board
    Inflation and other economic signals justify interest-rate caution. If you think your job is tough, consider Federal Reserve Chairman Jerome Powell. He’s signaled for months that the Fed will raise interest rates again this week, but economic and financial signals suggest he should pause. Meanwhile, Donald J. Trump is beating him up almost daily not to raise rates. What to do? The right answer is to ignore the politics, inside and outside the Fed, and follow the signals that suggest a prudent pause in raising rates...