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.
I forecast
the earliest rate hike would be in December 2016.
President Plosser's comments were echoed by Kansas City Fed President George (another policymaker who favors
earlier rate hike).
Not exact matches
Adams says the last time Ontario experienced such
rate hikes was after Darlington Nuclear Generating Station's four reactors entered service in the
early 1990s massively over budget.
Talk of
rate hikes are in the air Wednesday after minutes from the Bank of England's last meeting showed two out of nine board members voted for a
rate hike as
early as this month, the first time in three years that policymakers have done so.
There were, among others, the debt ceiling standoff - cum -
rating downgrade of 2011 and the fiscal cliff scare of late 2012, followed by awfully - timed tax
hikes and spending cuts
earlier this year.
Although the 25 basis point lift was in line with expectations, markets took some time to digest the news that three
rate hikes — not two, as was
earlier expected — were likely to happen in 2017.
The Fed is contemplating an interest
rate hike as
early as mid-year.
Earlier in the session, markets were confident about
rate hikes in the coming months and digested euro zone inflation data showing the slowdown was lesser - than - expected.
Christina Kramer, CIBC's group head of personal and small business banking for Canada, said it is too
early to gauge the extent of the impact of the mortgage underwriting rules, as well as the January interest
rate hike.
«Given the ECB's track record of reacting only very gradually, we continue to see an end to QE in December and a first
rate hike in June 2019, but the likelihood of an
earlier normalization has logically increased,» Annenkov added.
Odds of a Fed
rate hike were about 30 percent for June on Friday, from just 4 percent the week
earlier, according to futures markets.
Comments from several U.S. Federal Reserve officials, as well as the April meeting minutes, sent clear signals to the market
earlier this month that a June interest
rate hike could be on the cards.
But now, just when Westergren thought he'd finally moved Pandora into safe territory, he's facing his biggest battle yet: steep
hikes in music royalty
rates that were announced
earlier this year.
The Fed's monetary policy statement in July contained upbeat language that appeared to open the door to a
rate hike as
early as its next meeting in September.
Stronger U.S. jobs data fueled speculation
earlier this month of more Federal Reserve (Fed)
rate hikes.
The Federal Reserve's first interest
rate hike in a decade is expected as
early as this fall, an action with far - reaching implications for every corner of the world economy — from your mortgage
rate to emerging - market trade.
The other advantage of corporate bond ETFs is that they will not rise as much as Canada treasuries, at least in the
early phase of
rate hikes.
The European Central Bank
hiked rates earlier this month after euro zone inflation rose to 2.7 percent.
Too
early, too aggressive —
Rate hikes occur too
early and too fast, a prospect that may stall recovery and lead to incremental losses of 2 percent for stocks and gains of 7 percent for government bonds
The big worry is that the central bank will speed up its timetable to
hike rates earlier than expected.
The prospect for an
earlier - than - expected Fed
hike pushed interest
rates higher last Friday.
But despite two
rate hikes and impending balance sheet reduction, the 10 - year yield has moved 15 % lower since
early March while the dollar has been weakening — both contrary to many forecasts at the start of 2017.
The country's biggest banks raised their prime
rates after the Bank of Canada
hiked its overnight lending
rate earlier this month by a quarter of a percentage point to 1.25 per cent.
The statistics sent people into a tizzy, ratcheting up expectations for a Fed
rate hike as
early as December.
I also expected the Fed to initiate liftoff
earlier in the year, and not sneak in one, apologetic
rate hike in mid-December.
On the release front, the Bank of England maintained interest
rates at 0.50 %, but hinted at
earlier and larger
rate hikes.
As Wolf Richter pointed out for Wolf Street
earlier this month: «Since mid-December 2016, the Fed has
hiked rates four times, in total by 1 percentage point, but over the same period, junk bond yields
rated CCC or below have declined 1.5 percentage points as the bonds have rallied.»
I believe both these factors will probably allow the Fed to
hike interest
rates as
early as this summer or fall, a move to merely accommodative conditions that is long overdue.
After the remarks, the pound lost ground versus the dollar and euro, and short - term interest
rate futures are now pricing in the less - than - 50 % probability of a
rate hike on 10 May, down from 80 %
earlier in the week.
Economists quickly updated their forecasts, with some predicting a
rate hike by
early 2015, or even sooner.
As inflation expectations continue to fall, a 2015
rate hike by the Federal Reserve (Fed) looks increasingly unlikely; even the odds of an
early 2016
hike appear to be fading.
Most foresee either two or three additional increases in the Fed's benchmark
rate by year's end, coming after an
earlier hike in January.
TORONTO — The Canadian dollar fell on Wednesday against its U.S. counterpart after the Bank of Canada held interest
rates steady and showed enough caution to dampen expectations for a
hike early next year.
It should first be understood that
earlier rate -
hiking campaigns were always accompanied by quantitative tightening (QT).
Wall Street was rocked
earlier this month by fears that higher inflation will force faster interest -
rate hikes.
But
early last year, worried by soaring household debt levels, it began warning its next move would be a
rate hike and that Canadians should plan accordingly.
The dollar, however, failed to decline as weakness in the euro ($ 1.20 to $ 1.1949 further fallout from
earlier miss on Eurozone CPI) and the pound ($ 1.3605 - $ 1.3538, further fallout from
earlier miss in UK Services PMI, growing doubts UK will
hike rates next week) pushed the DX up to 92.67.
Federal Reserve Chair Janet Yellen continues to hint that interest
rates might be
hiked sometime this year, perhaps even as
early as September.
Volatility returned to the markets in a big way in
early February after inflation data triggered fears of a faster
rate -
hike cycle by the Federal Reserve.
They said the
rate hike and an
earlier recent one, «create an unfair burden for Hudson Valley families who rely on the MTA,» said Barrett.
Cuomo was endorsed
earlier today by the business lobbying group, which cited his efforts to install a cap on local property tax increases, limits on spending
hikes in state budgets and an uptick in the state's credit
rating.
As with the wastewater
rates, this increase follows an 8 cent per 1,000 gallon
rate hike earlier this year over 2016.
«Another
rate hike could happen as
early as the next Federal Reserve meeting on March 14,» notes Joe Melendez, CEO of ValueInsured in Dallas.
Yesterday, TD announced increases to their fixed -
rate mortgages (they'd already
hiked up variable
rates), while RBC had announced increases
earlier in the week.
This is quite a different result than
earlier this year, when European bond market bonds sold off in fear that a Fed
rate hike would lead to a shift away from European government bond markets to the higher yields and high quality of the US government bond market.
While the Federal Reserve is on track to raise interest
rates in
early December, Trump's fiscal spending could lift inflation and bolster the case for continued
hikes.
An event could be large and continous interest
rate hikes of the sort in the
early 1990s, massive layoffs by a nearby employer, an oil crisis, national economic slowdown, etc..
In raising interest
rates for just the second time in a decade, the Federal Reserve (Fed)
earlier this month threw a bit of a wrench into expectations about further
rate hikes.
There could be an interest
rate hike coming as
early as next month.