Sentences with phrase «beginning of the tightening cycle»

Fed has hiked 14 times and 10 yr rates are unchanged while 30 yr rates are 60bp lower than at the beginning of the tightening cycle.

The link between the beginning of the tightening cycle and the impact on financial markets is loose.

Not exact matches

But this unexpectedly sanguine report was a reminder that the beginning of a Fed tightening cycle could be near, and the subsequent selloff is a clear sign that the U.S. market is vulnerable to higher volatility in the near term, even though we like the long - term prospects of stocks.

The pace of rate increases has picked up since the central bank began its tightening cycle in December 2015.

Since the beginning of its current tightening cycle in June 2004, the federal funds rate has been increased from 1.0 per cent to 2.5 per cent in increments of 25 basis points at each Federal Open Market Committee (FOMC) meeting.

Implied volatilities gradually declined around the world in the second half of 2003, as it became clearer that the easing cycle was drawing to a close, with some central banks beginning to tighten monetary policy after a prolonged period of relatively low and stable interest rates.

However, the Fed's emphasis on downside risks is injecting a degree of uncertainty — and volatility — into markets, a factor not lost on global policymakers that are calling on the Fed to end its handwringing and begin the tightening cycle.

The Reserve Bank of New Zealand raised its target rate by 25 basis points to 6.75 per cent in March, taking the cumulative increase since this tightening cycle began in early 2004 to 175 basis points.

But this unexpectedly sanguine report was a reminder that the beginning of a Fed tightening cycle could be near, and the subsequent selloff is a clear sign that the U.S. market is vulnerable to higher volatility in the near term, even though we like the long - term prospects of stocks.

The recent move up began in earnest at the beginning of the last tightening cycle, but has persisted into the loosening cycle, as the FOMC has not let the monetary base grow, but has permitted the banks to continue to gather deposits (banking, savings, CDs, money market funds).

Consider the yield curve just before the beginning of the 2004 tightening cycle versus the curve shape at the end of that cycle (see Exhibit 2).