Investors should be careful: Wall Street is too eager to buy the dip in bonds, says Strategas
Michelle Fox CNBC October 30, 2023 Investors lured by high yields could be making a mistake if they are buying bonds these days, according to Strategas. Yields have been climbing since the Federal Reserve began raising interest rates last year. The 10-year Treasuryrecently topped 5%, a level not seen since 2007, and is now hovering around 4.9%. Meanwhile, […]
A Recession Is No Longer the Consensus
In WSJ survey, economists lower recession probability below 50% and say Fed is finished raising interest rates Harriet Torry and Anthony DeBarros The Wall Street Journal October 15, 2023 Economists are turning optimistic on the U.S. economy. They now think it will skirt a recession, the Federal Reserve is done raising interest rates and inflation will continue […]
Summers Says ‘Energizer Bunny’ Economy Signals Fed Hikes Failing
Christopher Anstey Bloomberg October 6, 2023 Ex-Treasury chief says Fed hikes may not be working as in past Summers says supply-demand imbalance helping drive yields up Former Treasury Secretary Lawrence Summers said the surge in US job growth last month is “great news” for now but also suggests the Federal Reserve’s interest-rate hikes aren’t working as they used to, […]
Underlying US inflation pressures subside in August
Lucia Mutikani Reuters September 29, 2023 Consumer spending increases 0.4% in August Core PCE price index gains 0.1%; up 3.9% year-on-year Underlying U.S. inflation pressures moderated in August, with the annual rise in prices excluding food and energy falling below 4.0% for the first time in more than two years, welcome news for the Federal […]
The Fed’s New Dot Plot After Its September Policy Meeting: Chart
Vince Golle Bloomberg September 20, 2023 The Federal Reserve’s so-called dot plot, which the US central bank uses to signal its outlook for the path of interest rates, shows the median year-end projection for the federal funds rate is 5.6%. The estimate for the end of 2024 increased to 5.1%. Fed policymakers on Wednesday held […]
Rising Rates Make Big Companies Even Richer
James Mackintosh The Wall Street Journal September 15, 2023 The amount companies earn from cash in the bank is going up even as interest costs fixed during the pandemic stand still. The Federal Reserve jacked up interest rates to slow the red-hot economy. At some of the biggest and most secure companies, the moves had the opposite […]
Powell Signals Fed Will Raise Rates If Needed, Keep Them High
Catarina Saraiva and Craig Torres Bloomberg August 25, 2023 Fed in position to ‘proceed carefully’ at upcoming meetings Stronger economy could push up inflation, warrant more hikes Federal Reserve Chair Jerome Powell said the US central bank is prepared to raise interest rates further if needed and intends to keep borrowing costs high until inflation is on […]
US INSIGHT: ‘Objective’ Fed Watcher Thinks FOMC Turned Dovish
Anna Wong (Economist) and Nicholas Hallmark (Economist) Bloomberg July 25, 2023 Former Fed Chairman Alan Greenspan famously said, “If I turn out to be particularly clear, you’ve probably misunderstood what I’ve said.” While Fed communications have become more transparent since Greenspan’s tenure, Fed watchers still often disagree on what they hear — perhaps reflecting their […]
Fed Seen Hiking Final Time to a 22-Year Peak in Economist Survey
Steve Matthews and Sarina Yoo Bloomberg July 20, 2023 One-fifth see another hike by November to contain inflation Fewer economists see recession relative to June survey Most economists expect the Federal Reserve to lift interest rates one more time next week as it ends a 16-month hiking cycle that has been the most aggressive fight against […]
Annual inflation falls to lowest rate since April 2021, as Americans pull back spending
Sylvan Lane The Hill June 30, 2023 Annual inflation fell in May to the slowest pace since April 2021, as Americans pulled back their spending, according to data released Friday by the Commerce Department. The personal consumption expenditures (PCE) price index, which is the Federal Reserve’s preferred way to track inflation, rose 3.8 percent annually […]