It's not jus the Fed that's been
holding rates down for the past several years.
Just to throw another log on the interest rates will stay lower longer than most expect fire, Niels Jensen over at Absolute Return Partners has another set of issues that will
hold rates down in his latest piece called The Burden of Low Interest Rates: The certeris paribus enigma (Registration may be required):
Under a President Hillary Clinton, I expected interest rates to stay low, due to continued central - bank activity aimed at
holding rates down.
Simply put, this means insurers charge low risk policy holders more than they should, in order to
hold rates down for higher risk policies.
Other states, like North Carolina, artificially
hold rates down to unsustainable levels, which makes it difficult to get insurance there.
In addition, the utility serving this area is not collecting any stranded costs, which has also
held rates down.»
Not exact matches
His market, the New York tri-state area, already has in place many of the provisions included in the health - care overhaul, including a provision that dependent under the age of 30 need be eligible for family coverage, and he's seen
rates continue to rise over recent years, making him skeptical of the plan's ability to
hold costs
down for small businesses.
Emphasize your strategy for
holding down your cash - burn
rate, and spell out exactly what you expect your costs to be for the first year or two.
The number of Buy
ratings on the stock — four compared with five
Holds, according to data from Bloomberg — shows analysts have confidence in finances
down the road, while others would rather wait and see if Cott can move past its erratic history.
«Pension plans since the financial crisis have been in pretty rough shape because interest
rates were
held down by all the — I won't call it manipulation — but all the activities by the central banks to keep interest
rates low and to spread growth,» he says.
Though all measures of inflation were coming
down as summer turned to fall and the economy clearly was slowing following a July brush with $ 4 - a-gallon gasoline, the FOMC decided to
hold the fed funds
rate at 2 %, concluding that «the downside risks to growth and the upside risks to inflation are both of significant concern to the committee.»
These actions include the deliberate attempt to
hold down interest
rates to below inflation.
However, the annual
rate was still being
held down by a fall in fruit prices at the beginning of last year.
Accordingly, with the economy expected to pick up and the unemployment
rate to come
down gradually as the mining investment transition came to an end, the Board judged it appropriate to
hold the cash
rate at 1.5 per cent.
Today's biggest bubble in safe assets, however, is the one in Treasury bonds, which is a direct consequence of the Fed's policy of
holding interest
rates down at abnormally low levels.
«With just a few more days left until Friday's deadline, we think enrollment is tracking towards a single - digit percent decline (if renewal
rate holds consistent with prior years and year - over-year growth in new sign - ups seen to date is sustained), but it all comes
down to an uncertain final surge,» Newshel wrote in a research note.
The NAV (net asset value) of a bond fund will move up or
down based on a number of factors such as changes in interest
rates, credit quality, and currency values (for international bonds) for the different bond
holdings in the fund.
So far the old «
rates up, bond prices
down» axiom seems to be
holding.
It was pressured
down to its low by a rising dollar (DX from 89.88 — 90.20, 2 - week high), which was boosted by a softening yen (107.35 — 107.70, rising US yields) a continued decline in the pound ($ 1.4095 - $ 1.4035, fallout from BOE's Carney comments that they could
hold off raising
rates next month), and a pullback in the euro ($ 1.2350 - $ 1.2295, miss on German PPI).
Clockwise from top left: Sean Hannity purchases raise concerns about LLCs, SL Green founder and chairman steps
down (Credit: Steve Friedman), Hillary Clinton asks RE firms to support Gateway (Credit: Gage Skidmore) and Fed
holds interest
rates steady.
Fiscal support started strong both here and in Europe, as did (see second figure) monetary policy (the negative numbers reflect the Fed's lowering and
holding down the Fed funds
rate).
Iceland and Greenland have approached the company to try to persuade it to build mining operations in their countries which offer «similar power
rates, along with tax breaks and incentives... [p] lus, the usually low temperatures there
hold down the costs of cooling high - powered computers.»
In the mainstream narrative, the Fed has been artificially
holding interest
rates down to stimulate the economy, and soon it will have to raise
rates to more normal levels.
This is a major factor
holding down its unemployment
rate to «just» 15 per cent today.
Certianly an argument could be made that international money is comming to north america
holding down long
rates.
We have already seen significant flows of global assets into US Treasuries this year, and in doing so, the level of long - term interest
rates is being
held down.
Some type of lesser measure by the Fed, such as lengthening the duration of its balance sheet
holdings to drive
down long - term interest
rates, seems to have better odds of being implemented.
For the past couple of years, underlying inflation has been
held down by the lagged effects of the exchange
rate appreciation that took place during 2002 and 2003, but the maximum impact from that source has now passed.
The increase in the CPI over the latest year, at 1.7 per cent, has been
held down by the effects of the health insurance rebate introduced in early 1999, which will cease to affect the measured inflation
rate early in 2000.
Strong profitability, low interest
rates and a debt burden well below historical peaks have all tended to
hold down the interest burden of the corporate sector: as a share of gross operating surplus, net interest paid by the corporate sector remains well below historical averages.
He explains that there are two sides to
holding down the interest
rate, a positive and a negative side.
Long - term
rates are being
held down by structural factors including plentiful global savings, providing a favorable backdrop for equities.
The improving U.S. outlook is already pushing up some lending
rates, and should eventually reduce the need for central banks in the United States and Canada to
hold down short - term interest
rates to spur the economy.
The FOMC's March minutes said as much: «A number of participants judged that the headwinds restraining growth and
holding down the neutral
rate of interest were likely to subside only slowly.
In the fourth quarter as a whole, industrial production jumped 8.2 % at an annual
rate «after being
held down in the third quarter by Hurricanes Harvey and Irma,» the Fed said.
Central banks would counter that they had little choice but to pursue these actions and that, in any event, there are likely to have been some real factors at work in
holding down real interest
rates.
By itself, this below - average spread might normally be taken to imply slightly tighter - than - average conditions, although a more likely interpretation is that bond yields have been
held down by offshore bond - market developments reflecting expectations that short - term interest
rates around the world will remain below average for some time.
It is observed that lower
rates mean lower borrowing costs or lower costs of drawing
down liquid asset
holding making the purchase of capital goods more attractive.
The favourable near - term outlook for inflation is being underpinned by continued help from the exchange
rate in
holding down import prices.
The higher exchange
rate will
hold down inflation in the short term, though this effect will eventually wear off.
At the same time, the overall inflation
rate is being
held down by the gradual pass - through of the exchange
rate appreciation, with prices of tradable items in the CPI declining slightly in recent quarters.
For some time, underlying CPI inflation has been
held down by the lagged effects of the exchange
rate appreciation that took place during 2002 and 2003, while domestically sourced inflation has been higher.
The increased demand to
hold the bank's liabilities (i.e., the falling demand for its reserves), is a form of savings that drives
down the natural
rate of interest.
Economist Lacy Hunt of Hoisington Investment Management thinks that big debts and weak demand will
hold down interest
rates for years.
At any
rate, we at Hopkins
hold that official psychiatry has good evidence to argue against this kind of treatment and should begin to close
down the practice everywhere.
Many of you will thumb me
down for dropping Rambo but i
rate Wilshere above Rambo, all he has to do is stop
holding onto the ball for more than 3 seconds and he will be fine.
Anyone who has followed Danny Welbeck's Manchester United career will be aware of the fact that Danny is lethal playing
down the left - hand side and can also provide more work -
rate in that area of the pitch, while Olivier can effectively
hold the ball up upfront.
So let's list
down the attributes: Finishing Heading
Holding the ball Linkup Play First Touch Work
rate Team before Self Tracking back to defend
Washington State ran just 51 plays all game in a 19 - 6 loss to the Beavers, primarily because the offense couldn't
hold onto the ball — turnovers and a poor third -
down conversion
rate (created by poor first and second downs, of course) doomed Mike Leach's Cougars.
When you try those triangles without someone to
hold off a defender with his back to goal your success
rate goes way
down.