Sentences with phrase «faster fed rate»

The S&P 500 index, or the equity markets, in general, will likely be reporting losses for the first quarter, largely due to fears of faster Fed rate hikes and the rising bond yields, political turmoil in Washington and increased odds of US - China trade war.

Faster Fed rate hikes would make stocks less attractive to some investors.

The dollar will likely only resume its uptrend once markets start pricing in faster Fed rate increases.

Not exact matches

The minutes showed that Fed officials thought it may be appropriate to raise interest rates over the next few years faster than previously expected.

The low interest rates that the Federal Reserve relied on to kick - start the economy, meanwhile, fed this same dynamic, making it easier for fast - growing companies to borrow money to grow further — and making bond interest look unattractive compared with stock dividends.

But still, the faster the pace of unwinding and Fed rate hikes, the bigger risk it poses.

«The Fed may raise rates at a faster pace than the economy can withstand,» Stifel Nicolaus» chief economist told CNBC's «On the Money.»

The Fed needs to drive down long - term borrowing rates because the economy isn't growing fast enough to reduce high unemployment, Bernanke said in a speech to the Economic Club of Indiana.

If the market sees the Fed behind the curve, interest rates could rise further and faster than expected.

Powell in statements throughout the year, culminating with his recent Senate confirmation hearing, has been clear he sees little risk of inflation that would prompt the Fed to raise rates faster than expected, and takes weak wage growth as a sign that sidelined workers remain to be drawn into jobs.

As the tax plan advanced in Congress, forecasting shops at Goldman Sachs, JP Morgan, and others penciled in a faster pace of Fed rate increases — essentially expecting the Fed would need to lean against the inflationary outcome.

Bond yields rose and stocks slumped after an unexpected rise in consumer inflation to its fastest pace in a year, making it more likely the Fed will raise interest rates three or more times this year.

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.

Yellen said the Fed should have been raising interest rates faster in those years, and with less predictability.

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

«The Fed is signaling it is keeping to the gradual path and not hiking rates at faster pace (at least for now),» Alvin Liew, senior economist for UOB in Singapore, said in a note.

Higher inflation this year should push the Fed to raise the federal funds rate at a faster pace, which will have knock - on effect on interest rates and the bond market.

Yellen said asset valuations including stock prices in part reflect expectations that the Fed will normalize rates faster than other central banks.

Amid market concerns that the Fed was about to resume its rate - hiking cycle, Brainard instead offered cautionary tones against moving too fast.

«A strong job market, accelerating wage growth, and expectations of faster rate hikes from the Fed all have played roles in pushing up longer - term rates.»

Other Fed policymakers have suggested fiscal stimulus, with the unemployment rate now at a healthy 4.7 %, could lead to a faster pace of rate hikes than currently anticipated.

When Bernanke's taper talk caused long - term interest rates to rise much faster than the Fed intended, one of the ways in which the central banks sought to allay market fears was to stress that it would keep short - term rates steady until the jobless rate had reached at least 6.5 %.

-LSB-...] • The «Misery» Index Falls to an 8 Year Low (Pragmatic Capitalism) see also Fed's Rate Dilemma: Job Gains vs. Low Inflation (WSJ) • Most Innovative Companies 2015 (Fast Company) • Hedge Funds Keep Winning Despite Losing (WSJ) • Shark Tank: The lost pitches (Fortune) • How the Markets Tempt Us Into Making Mistakes (A Wealth of Common Sense)-LSB-...]

November's solid jobs report gave the Fed a final piece of evidence, clearing the way for a December rate hike, but now the question is how fast can it raise rates given weakness in some other economic data.

If long bond inflation concerns are indeed correct (which I believe they are), the Fed will have to ratchet short term rates at a faster pace which may re-invert the yield curve.

That would add to my confidence on inflation in the short term, but might also spur the Fed to raise rates faster than the market has priced in.

The Fed confirmed that its bond - buying stimulus program would end next month, and its new projections suggested some officials saw the risk that rates might have to rise at a faster pace when the bank eventually starts tightening.

Investors are likely skittish because the prospect of increased inflation may force the Fed to raise interest rates faster than expected.

Faster price growth would be a good thing (here's Bin Appelbaum on why), but there's a wrinkle to this dollar scenario: if the Fed continues on its rate - hiking, «normalization campaign,» we may not achieve that result.

Higher fiscal spending will likely ramp growth and allow the Fed to normalize key rates at a faster clip.

The Fed's hesitation to raise rates faster is contributing to another trend that is also bullish for gold.

It usually plays out like this: The economy starts to grow faster than expected, wages and inflation shoot up, and then the Fed reacts by aggressively raising interest rates.

The Fed's 0.25 % hike in the fed funds target rate was expected, but the latest survey of individual Fed policymakers suggested that most anticipate a faster pace of fed funds rate increases in 2019 and 20Fed's 0.25 % hike in the fed funds target rate was expected, but the latest survey of individual Fed policymakers suggested that most anticipate a faster pace of fed funds rate increases in 2019 and 20fed funds target rate was expected, but the latest survey of individual Fed policymakers suggested that most anticipate a faster pace of fed funds rate increases in 2019 and 20Fed policymakers suggested that most anticipate a faster pace of fed funds rate increases in 2019 and 20fed funds rate increases in 2019 and 2020.

If inflation rises, The Fed is likely to increase interest rates faster to try and slow inflation's acceleration.

Another reason rates have stayed low is a cautious Fed that was reluctant to hike rates too fast when inflation remained low.

''... we could be going into a situation where the Fed will have to raise rates faster and / or sell more securities, which certainly could lead to more uncertainty and market volatility.

First, the Fed has never pre-emptively raised interest rates faster than inflation.

She also repeated the Fed's message that even after the bond program ends, it will keep short - term interest rates near zero for a long time because the bank doesn't want to remove its support too fast.

The US dollar is higher across the board after geopolitical tensions have eased and Fed speakers are making a case for a faster rate hike for US interest rates.

The recent flattening of the yield curves in the U.S. has precipitated discussion that the FED is moving too fast in raising rates with the market action predicting an impending recession.

There's no shortage of factors to weigh as the Fed stands ready to hike interest rates faster than anticipated on worrying signs of inflation growth and the tap of foreign liquidity supporting 10 - year Treasuries could dry up as central banks in Europe and Asia curb their quantitative easing programs.

In response, both fed funds futures and Treasury yields moved steadily higher during September and briefly advanced once more following the labor market report for the month, as investors initially zeroed in on wage growth of 2.9 %, the fastest rate since 2009.

This should either trigger a faster policy response, or raise concerns that the Fed is falling behind the curve; both scenarios should result in a rise in market interest rates.

«We do expect that mortgage rates may also become somewhat more volatile in the year ahead, particularly as the Fed allows its [mortgage - backed securities] portfolio to run off at a faster rate through the course of the year.»

Despite Trump's complaints during the presidential race that the Fed was aiding Democrats in keeping rates ultra-low under President Barack Obama, his choices for a chairman and for other slots on the Fed's board have been moderates rather than hard - core conservatives who would favor a faster tightening of credit.

The veteran central banker is uneasy with that, and warns the Fed should prepare for a faster and more aggressive campaign of rate hikes given the inflation risks presented by all the liquidity it has provided markets.

«The central bank does not want to make the mistakes made in the past when the Fed raised rates too high, too fast and became the No. 1 cause of a recession,» said Sung Won Sohn, an economics professor at California State University, Channel Islands.

However, if the recovery in the global private - investment cycle, particularly in the U.S., proves stronger than we currently expect, it would support productivity growth, lift neutral real rates and encourage the Fed to take up an even faster pace of rate hikes than we currently pencil into our base case.

That article suggests the Fed might increase the short - term interest rate too fast causing the yield curve to invert or at least to flatten much.

Rising inflation would be a catalyst to push the Fed toward raising interest rates at a faster pace than currently expected.