This implies any given increase
in policy interest rates is likely to have a bigger economic impact than was the case pre-crisis.
After all, when a central bank influences the cost of financing through changes
in the policy interest rate, its actions affect the economy by changing asset prices, encouraging or discouraging risk taking, and influencing credit flows.
Not exact matches
Its
policy of maintaining extremely low
interest rates has been,
in large part, responsible for fueling the current mania for housing.
The recent rise
in oil prices fueled expectations the Federal Reserve could flag more
interest rate hikes at its
policy meeting this week.
Important factors that could cause actual results to differ materially from those reflected
in such forward - looking statements and that should be considered
in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases
in the build
rates of certain aircraft; 6) the effect on aircraft demand and build
rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest
in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions
in the industries and markets
in which we operate
in the U.S. and globally and any changes therein, including fluctuations
in foreign currency exchange
rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain
in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount
rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both
in the U.S. and abroad; 20) the effect of changes
in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction
in our credit
ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of
interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher
interest payments should
interest rates increase substantially; 27) the effectiveness of any
interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco
in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations
in foreign current exchange
rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government
policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
Before Yellen addressed the Economic Club of Washington, her counterparts
in Ottawa released their latest
policy statement,
in which Canada's central bank said it was keeping its benchmark
interest rate at 0.5 %, a quarter - point shy of the lowest level ever.
NEW YORK, May 2 - U.S. stocks briefly rose but returned to negative territory on Wednesday after the Federal Reserve left
interest rates unchanged
in its
policy announcement.
NEW YORK, May 2 (Reuters)- U.S. stocks briefly rose but returned to negative territory on Wednesday after the Federal Reserve left
interest rates unchanged
in its
policy announcement.
Those federal rules, which double down on restrictions adopted
in 2014 and stern warnings to lenders issued by OSFI earlier this summer, require banks to qualify borrowers at higher
interest rates, impose additional limits on mortgages for buyers with small down payments, and compel financial institutions to share the risk by taking out insurance
policies on low - ratio mortgages.
NEW YORK, May 1 - The dollar broke into positive territory for the year and U.S. bond yields inched higher again on Tuesday as the recent rise
in oil prices fueled expectations the Federal Reserve could flag more
interest rate hikes at its
policy meeting this week.
An Australian banker caught on live TV showing a high
interest rate in nearly - naked photos of supermodel Miranda Kerr has launched a viral video that has already drawn hundreds of thousands of views on YouTube — and fresh debate about employer Internet
policies.
So that
policy response is going to lead to slightly higher inflation
in terms of wages and slightly higher
interest rates, and the market had to respond to that.
Druckenmiller argues the U.S. Federal Reserve has artificially suppressed
interest rates and refers to the current situation as the most excessive and drawn out monetary easing
policy in the history of the United States.
The members of the Bank of Canada's
policy committee, like plenty of others, thought they were going to cut
interest rates in January.
The Australian dollar has followed Wall Street lower after the US Federal Reserve indicated that it is on track to raise its
interest rate at its next
policy meeting
in June.
«
In such circumstances, fiscal
policy may be called upon to provide stimulus, particularly since it is likely to be more effective at low
interest rates,» Lane said.
But with the economy growing so much faster than projected,
policy makers may well feel compelled to advance their plans to raise
interest rates in order to keep up.
Lane added some texture to the central bank's decision to increase
interest rates, saying
policy makers were encouraged by «widespread strength»
in exports and business investment.
Specifically, there are concerns about what might happen should the tide turn
in the bond markets when 30 years of falling
interest rates reverses at a time when the Federal Reserve is preparing to tighten monetary
policy by forcing
rates higher.
In the category of communications
policy, we also extended our estimate of how long we expect to keep the short - term
interest rate at exceptionally low levels to at least mid-2015.
Even though our activities are likely to result
in a lower national debt over the long term, I sometimes hear the complaint that the Federal Reserve is enabling bad fiscal
policy by keeping
interest rates very low and thereby making it cheaper for the federal government to borrow.
Trump said he used to invest
in U.S. stocks but got out because «I don't like what I'm seeing at all,» pointing to U.S. immigration
policies, Syrian refugees, and what he said were «artificially low»
interest rates.
It achieves that by raising or lowering its
policy interest rate, which influences other
interest rates such as what you'll pay on your mortgage or auto loan, and the return you'll get on the balance
in your savings account.
I would encourage you to remember that the current low levels of
interest rates, while
in the first instance a reflection of the Federal Reserve's monetary
policy, are
in a larger sense the result of the recent financial crisis, the worst shock to this nation's financial system since the 1930s.
But if Christine Lagarde and the IMF have their way, zero
interest rate policy in America will last at least into year eight.
The divergence
in policy between the U.S. Federal Reserve and the Bank of Canada is happening: the Fed likely will raise
interest rates at least a few times
in 2017, while the Canadian central bank likely will do nothing at all.
But rather than politics, Darby,
in a Dec. 3 report, wrote it's the country's monetary
policy — the Bank of Thailand surprised analysts with an
interest rate cut last month to boost growth — that «ought to be setting the alarm bells ringing
in investors ears.»
The index measures 500 consumers» attitudes on future economic prospects,
in areas such as personal finances, inflation, unemployment, government
policies and
interest rates.
The 30 - day Fed Fund futures can be used as a guide to predict when the Fed might increase
interest rates since the prices are an expression of trader's views on the likelihood of changes
in U.S. monetary
policy.
I think that we face a structural problem
in monetary
policy and that is when recession comes we lower
interest rates by... three percentage points.
«Emerging market powers eager to move away from being tied to the monetary
policy of the U.S. and the banking system as well as to adopt the block chain as a payment system prove willing adherents as they adjust to zero
interest rates and the decrease
in systematic risk.»
Subdued inflation forced the BOJ to revamp its
policy framework
in 2016 to one better suited for a long - term battle against deflation, which targets
interest rates instead of the pace of money printing.
To stage another fiscal drama just as the Federal Reserve starts to roll back its quantitative easing
policy (which will put upward pressure on
interest rates, including those on residential mortgages) would like banging pots and pans
in the midst of an already distressed cattle.
He has implemented a massive stimulus
policy by cutting the central bank's benchmark
interest rate to negative, keeping the 10 - year Japanese government bond yield near 0 percent
in an effort to control the yield curve and stepping up the Bank of Japan's asset purchases.
«One specific consequence would be that even extraordinarily low
policy interest rates could prove to be less stimulative than
in normal circumstances,» Poloz said.
In his job as an activist at the Center for Popular Democracy, Barkan led a successful effort to get Fed officials thinking more about low - income Americans as they conduct monetary policy, often arguing against interest rate hikes in the face of high underemployment and weak wage growt
In his job as an activist at the Center for Popular Democracy, Barkan led a successful effort to get Fed officials thinking more about low - income Americans as they conduct monetary
policy, often arguing against
interest rate hikes
in the face of high underemployment and weak wage growt
in the face of high underemployment and weak wage growth.
Regulating the money supply through changes
in interest rates — i.e. monetary
policy — would be much more direct, which could mean it's more effective and cost - efficient.
While the Fed has indicated it plans to raise short - term
interest rates, the uncertain domestic and global economies and the still - loosening monetary
policy of central bankers
in other countries suggests that
rates could remain very low for a long time still.
Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions
in the industries and markets
in which United Technologies and Rockwell Collins operate
in the U.S. and globally and any changes therein, including financial market conditions, fluctuations
in commodity prices,
interest rates and foreign currency exchange
rates, levels of end market demand
in construction and
in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; (2) challenges
in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture or restructuring activity, including the pending acquisition of Rockwell Collins, including among other things integration of acquired businesses into United Technologies» existing businesses and realization of synergies and opportunities for growth and innovation; (4) future timing and levels of indebtedness, including indebtedness expected to be incurred by United Technologies
in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including
in connection with the pending Rockwell Collins acquisition; (5) future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope of future repurchases of United Technologies» common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash, including
in connection with the proposed acquisition of Rockwell; (7) delays and disruption
in delivery of materials and services from suppliers; (8) company and customer - directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes
in political conditions
in the U.S. and other countries
in which United Technologies and Rockwell Collins operate, including the effect of changes
in U.S. trade
policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade
policies and currency exchange
rates in the near term and beyond; (16) the effect of changes
in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations
in the U.S. and other countries
in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result
in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including
in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the market price of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted
in their operation of their businesses while the merger agreement is
in effect; (21) risks relating to the value of the United Technologies» shares to be issued
in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.
Nevertheless, when making
interest rate policy in early March, BoC governor Mark Carney overlooked rising pressures on inflation and left the central bank's target for Canada's overnight
rate at 1 %.
That means the Fed will likely have to get more, rather than less, aggressive
in its efforts to «normalize»
interest rate policy.
The Fed, Wednesday's statement notwithstanding, will likely have to get more, rather than less, aggressive
in its efforts to «normalize»
interest rate policy.
«The failure to deliver tax reform and the slower relative growth likely keep us on the path of gradual normalization
in interest rate policy,» said the analysts, who see the S&P 500 falling to 2,550 from its Monday close of 2,572.83.
That means
policy makers may have to raise
interest rates sooner than they have
in the past to keep prices
in check.
Lacking a formal education
in economics and having graduated with law degree from Yale University, Powell had to learn on the job when it came to monetary theory and
interest -
rate policy.
German finance minister Wolfgang Schäuble has already blamed Draghi's low -
interest rate policy for the rise of the populist right - wing Alternative für Deutschland, which performed well
in regional polls last year at the expense of Chancellor Angela Merkel's Christian Democrats.
Germany's media isn't normally as breathless as, for example, the British press, but it's always willing to whip Germans up into a frenzy over the ECB's zero
interest -
rate policy, especially
in an election year.
«This would offset the impact of a decline
in the long - run neutral real
rate of
interest by giving the (Fed) more «
policy space» to respond to adverse shocks,» Kocherlakota said.
Mired
in a world of low growth, low inflation and low
interest rates, officials from the Federal Reserve, Bank of Japan and the European Central Bank said their efforts to bolster the economy through monetary
policy may falter unless elected leaders stepped forward with bold measures.
Without a clear voice from Berlin, the EU will simply find it harder to articulate
policies to deal with the suppression of civil rights
in central Europe, the splintering of the single market through Brexit and — heaven help us — a possible renewal of the Eurozone crisis amid as global
interest rates turn higher.