Sentences with phrase «by fed rate»

Rate survey: Average card APR soars to record high of 16.21 percent — Dec. 20, 2017: Propelled by a Fed rate increase, the average credit card interest rate jumped to a new record high this week, according to the CreditCards.com's weekly survey of new card offers.

Rate survey: Average card APR soars to record high of 16.21 percent — Dec. 20, 2017: Propelled by a Fed rate increase, the average credit card interest rate jumped to a new record high this week, according to the CreditCards.com's weekly survey of new card offers.

They tend to be less affected by Fed rate uncertainty than Treasuries and have benefitted from firmer credit conditions at the low end of the quality spectrum (high yield).

He has published a study entitled «Don't be too spooked by Fed rate hikes,» dated January 31, 2015.

Not exact matches

In the past year, the median outlook for the Fed's top rate in this hiking cycle has risen by nearly 60 basis points to 3.24 percent.

So - called «dollar - sphere» markets have monetary policy that is at least partly outsourced to the Fed, and by extension are vulnerable to rate hikes.

The bond purchases, the third round of quantitative easing embarked upon by the Fed in the wake of the 2008 financial collapse and subsequent recession, have kept interest rates and bond yields low.

Although the move itself is minimal, with the Fed saying in a statement that it would lift its benchmark rate by a quarter of a percent, to between 0.25 percent and 0.5 percent, it has a huge symbolic value.

And as the debt load grows, efforts by the Federal Reserve to stimulate the economy with lower rates would be more likely to feed runaway inflation.

Usually by the time you get to that point, say, in»06 or» 07, the Fed hikes rates aggressively, the curve is inverted, there had been excessive lending against inflated real - estate values.

Rather than the Fed pursuing a policy resulting in some steady rate of growth in the money supply, I would suggest that the Fed attempt to produce a steady rate of growth in the sum of the credit it creates and the credit created by depository institutions, i.e., commercial banks, savings associations and credit unions.

«While the Fed may hike the funds rate to 3.4 %, that increase is unlikely to be matched by a rise in long - term Treasury yields.

To tweak interest rates, the Fed adjusted the federal funds rate, also known as the interbank lending rate, which is used by financial institutions to set the prime rate, or the base rate upon which other interest rates are set.

Record - low interest rates, as set by the Fed in recent years, have squeezed bank margins.

Fed officials have been stumped by the trend in financial conditions, which actually have loosened during the five rate increases the committee has approved since December 2015.

Still, the Fed chairman reiterated his argument that lower rates boost growth by helping increase prices of stocks, homes and other assets.

The way for the Fed to support a return to a strong economy is by maintaining monetary accommodation, which requires low interest rates for a time.

And in the U.S., Fed chair Janet Yellen hiked rates by 25 points on Wednesday evening but signaled no pick - up in the pace of normalization of rates.

«We expect the ECB to continue net asset purchases until around the third quarter of 2018, while the Fed will likely begin reducing its stock of quantitative easing assets early in 2018... These opposite moves mean that the ECB's balance sheet could be around 20 percent larger than the Fed's by around end - 2018, assuming constant FX rates,» he noted.

Russ Koesterich, BlackRock, and Dorothy Weaver, Collins Capital, weigh in on the market's reaction to the Fed's decision to raise rates by 25 basis points.

The dollar / yen is likely to fall unless there are clearer signs of a rate hike by the Fed,» said Shinichiro Kadota, senior FX and rates strategist at Barclays Securities Japan.

To be considered a success, the Fed needs its rate hike to be followed next year by continued U.S. growth, continued low unemployment, and, perhaps most in doubt, a turn higher in inflation.

For all the talk of abnormal times and changes in underlying economic fundamentals, the Fed is pinning its hopes on a very conventional premise — that the U.S. consumer will keep spending at recent strong rates, encouraged by low unemployment and the apparent beginnings of higher wages.

The 7 - 2 vote for the rate move, the Fed's third this year, raises the benchmark lending rate by a quarter percentage point to a target range of 1.25 percent to 1.5 percent.

Testimony to Congress next week by Fed chief Jerome Powell will set the tone on interest rate expectations, says Manpreet Gill of Standard Chartered Private Bank.

That debate takes place internally at the central bank, where contrasting views are regularly articulated by members of the Federal Open Market Committee (FOMC) as our Federal Reserve (Fed) policymakers attempt to steer monetary policy with regard to interest rates.

Fed by this belief, Canada's home ownership rate rose to eclipse most other rich nations», up almost 10 % since 2000.

By offering clearer guidance on the direction of interest rates, the Fed could help to stabilize the volatile stock market.

Williams, who will leave his current job as San Francisco Fed president in June to take over at the New York Fed, also said he expects the Fed's shrinking balance sheet will help steepen the curve by putting upward pressure on longer - term rates.

It's not one that can be solved simply by the Fed raising rates.

According to the Fed's economic projections, the central bank expects to raise rates three times by year - end.

Revenue from fixed - income trading surged about 29 %, while equity trading revenue rose about 7 %, boosted by volatility around the Fed's interest rate hikes.

Given that most people now expect the Fed to raise [interest] rates in December, it's likely that this stock will get there on any positive commentary by CEO Jamie Dimon,» he said.

However, if we do see any additional interest rates hikes by the Fed it would most likely be after the presidential election.

Some see higher rates as a vote of confidence on the strength of the economy, while others consider increased borrowing costs a threat to the bull market that began amid — and was fueled by — historically low rates and extraordinary Fed stimulus.

The Fed ended its latest policy meeting by leaving its key short - term rate unchanged at 1.5 percent to 1.75 percent, the level it set in March after its sixth rate increase...

By contrast, in August, when the market was still anticipating that the Fed might raise its key interest rate in September, the two high - yield funds lost a net $ 344 million.

A large portion of the spread compression happened in reaction to two events: the Fed's decision to begin winding down its large - scale asset - purchase program known as quantitative easing on Dec. 18, and Janet Yellen's first meeting as Fed chair on March 19, which coincided with the release of forecasts by Fed officials who anticipated earlier rate hikes than before.

Deutsche Bank economists predict the curve will invert in 2019 as the Fed keeps raising interest rates by a quarter percentage point every quarter, as markets expect.

The Fed reckons U.S. gross domestic product could expand by as much as 2.7 % in 2016, which would be considerably faster than the rate of growth — roughly 2 % — that policy makers think the American economy can handle without stoking inflation.

«If the Fed continues to raise rates according to our forecast and the term premium does not recover, the yield curve would invert by the end of 2019, potentially as early as June of next year,» they write in a note.

It has done this by offering attractive interest rates on banks» reserves held at the Fed, so the banks keep their excess funds there instead of lend them out to borrowers in the economy.

The quarter - point rate hike announced by the Fed was expected.

The hope, of course, is that by raising short rates the Fed will be front running a stronger economy and rising long rates.

«I think it will put pressure on the Fed to raise rates in the first half of next year by June, perhaps even March,» said Craig Dismuke, chief economist at Vining Sparks in Memphis, Tennessee.

If Yellen's Fed fails to convince Wall Street about the policy path, a rate increase could trigger financial turmoil of the sort seen in 2013, when investors were caught off guard by the central bank signaling an end to its bond - buying program.

The Fed telegraphed December's rate increase by saying in October it would consider tightening at its next meeting.

Richard Franulovich, an analyst at Westpac, noted that back in June the median «dot plot» — the rate moves expected by the Fed's members — showed five hikes to end - 2017.

And what if the economy heats up too fast and the Fed slams on the brakes by raising interest rates?

The Fed is risking its credibility among investors by refusing to consider a sooner interest rate hike, hedge fund manager David Gerstenhaber tells CNBC.