Vanguard senior investment strategist Todd Schlanger says a «
gradual increase in interest rates» in the U.S. is a good thing for long - term investors because ultimately higher rates translate into higher returns for investors down the road.
A gradual increase in interest rates is the best way to deal with inflation and support the U.S. economy, Loretta Mester, president and CEO of the Federal Reserve Bank of Cleveland, told CNBC Thursday.
As the economy recovers from the 2008 - 2009 crash, strengthening jobs numbers and GDP has convinced Fed Chairwoman Janet Yellen to commit to
gradual increases in the interest rates each year.
Not exact matches
The rise
in the annual inflation measures reported by the Commerce Department on Monday was anticipated by economists and Fed officials and is not expected to alter the U.S. central bank's
gradual pace of
interest rate increases.
The rise
in the annual inflation gauges reported by the Commerce Department was anticipated by economists and Fed officials and is not expected to alter the US central bank's
gradual pace of
interest rate increases.
In Powell, he'll select a former private - equity executive who favors continuing
gradual interest -
rate increases and sympathizes with White House calls to ease financial regulations.
These principles lay out a roadmap about how exit is likely to occur: First, the end of reinvestment of maturing securities; second, an
increase in short - term
interest rates, and, third, the
gradual sale of mortgage backed securities to shrink the magnitude of excess reserves
in the system and ultimately to restore the Fed's balance sheet to a predominately all - Treasury portfolio.
This means they expect to see a
gradual increase in mortgage
interest rates over the coming months.
The Board's assessment throughout this period has been that, with strong growth, a
gradual increase in underlying inflation, and firming demand for credit,
interest rates needed to rise to lessen the risks of higher inflation
in the future.
While we anticipate
interest rates and inflation are likely to continue moving up, we believe potential
increases in both should be
gradual, and that type of
gradual movement shouldn't derail the markets.
But with inflation nowhere
in sight yet, and the Federal Reserve currently employing a policy of very
gradual rate increases, we may remain
in a period of low
interest rates for a while.
These conditions, coupled with a rising
interest rate environment, can stimulate a
gradual increase in inflation.