«Were the FOMC to delay increases
in the federal funds rate for too long, it could end up having to tighten policy relatively abruptly to keep the economy from significantly overshooting both of the Committee's longer - run policy goals» on inflation and jobs, Yellen said.
Not exact matches
The committee says it expects «economic conditions will evolve
in a manner that will warrant further gradual increases
in the
federal funds rate; the
federal funds rate is likely to remain,
for some time, below levels that are expected to prevail
in the longer run.
For her part,
Federal Reserve Chairwoman Janet Yellen said in June that the removal of the Fed as a prop in October might not coincide with an immediate increase in its federal funds rate, which has hovered near zero since the financial crisis
Federal Reserve Chairwoman Janet Yellen said
in June that the removal of the Fed as a prop
in October might not coincide with an immediate increase
in its
federal funds rate, which has hovered near zero since the financial crisis
federal funds rate, which has hovered near zero since the financial crisis began.
All of this raises questions about support
for a critical line
in the Fed's statement where it says: «The
federal funds rate is likely to remain,
for some time, below levels that are expected to prevail
in the longer run.»
These risks and uncertainties include: Gilead's ability to achieve its anticipated full year 2018 financial results; Gilead's ability to sustain growth
in revenues
for its antiviral and other programs; the risk that private and public payers may be reluctant to provide, or continue to provide, coverage or reimbursement
for new products, including Vosevi, Yescarta, Epclusa, Harvoni, Genvoya, Odefsey, Descovy, Biktarvy and Vemlidy ®; austerity measures
in European countries that may increase the amount of discount required on Gilead's products; an increase
in discounts, chargebacks and rebates due to ongoing contracts and future negotiations with commercial and government payers; a larger than anticipated shift
in payer mix to more highly discounted payer segments and geographic regions and decreases
in treatment duration; availability of
funding for state AIDS Drug Assistance Programs (ADAPs); continued fluctuations
in ADAP purchases driven by
federal and state grant cycles which may not mirror patient demand and may cause fluctuations
in Gilead's earnings; market share and price erosion caused by the introduction of generic versions of Viread and Truvada, an uncertain global macroeconomic environment; and potential amendments to the Affordable Care Act or other government action that could have the effect of lowering prices or reducing the number of insured patients; the possibility of unfavorable results from clinical trials involving investigational compounds; Gilead's ability to initiate clinical trials
in its currently anticipated timeframes; the levels of inventory held by wholesalers and retailers which may cause fluctuations
in Gilead's earnings; Kite's ability to develop and commercialize cell therapies utilizing the zinc finger nuclease technology platform and realize the benefits of the Sangamo partnership; Gilead's ability to submit new drug applications
for new product candidates
in the timelines currently anticipated; Gilead's ability to receive regulatory approvals
in a timely manner or at all,
for new and current products, including Biktarvy; Gilead's ability to successfully commercialize its products, including Biktarvy; the risk that physicians and patients may not see advantages of these products over other therapies and may therefore be reluctant to prescribe the products; Gilead's ability to successfully develop its hematology / oncology and inflammation / respiratory programs; safety and efficacy data from clinical studies may not warrant further development of Gilead's product candidates, including GS - 9620 and Yescarta
in combination with Pfizer's utomilumab; Gilead's ability to pay dividends or complete its share repurchase program due to changes
in its stock price, corporate or other market conditions; fluctuations
in the foreign exchange
rate of the U.S. dollar that may cause an unfavorable foreign currency exchange impact on Gilead's future revenues and pre-tax earnings; and other risks identified from time to time
in Gilead's reports filed with the U.S. Securities and Exchange Commission (the SEC).
The target
for the overnight
rate is also the most appropriate policy
rate for international comparisons;
for example, with the target
for the
federal funds rate in the United States and with the two - week repo
rate in the United Kingdom.
The Fed statement said: «The Committee anticipates that it will be appropriate to raise the target range
for the
federal funds rate when it has seen some further improvement
in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.»
For the time period
in question, the
federal funds rate was low (by historic standards), leading the Fed to dismiss the yield curve's «prediction» of recession.
«
In light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months,» Yellen said in prepared remarks to a central bankers conference in Jackson Hole, Wyo
In light of the continued solid performance of the labor market and our outlook
for economic activity and inflation, I believe the case
for an increase
in the federal funds rate has strengthened in recent months,» Yellen said in prepared remarks to a central bankers conference in Jackson Hole, Wyo
in the
federal funds rate has strengthened
in recent months,» Yellen said in prepared remarks to a central bankers conference in Jackson Hole, Wyo
in recent months,» Yellen said
in prepared remarks to a central bankers conference in Jackson Hole, Wyo
in prepared remarks to a central bankers conference
in Jackson Hole, Wyo
in Jackson Hole, Wyo..
What I would like to do today is to explain
in some detail the logic underlying this expectation that economic conditions will warrant exceptionally low levels of the
federal funds rate for an extended period.
Data note
for graph: The maximum and minimum
federal funds rates before 1990 were almost all calculated using the methodology described
in Reifschneider's footnote 1, table 1.
When the Fed raises the
federal funds rate, you can expect higher interest
rates for borrowing and saving
in the near future.
In her first public comments in two months, Yellen said the economy was improving to the point that policymakers soon could nudge up the benchmark federal funds rate for the first time since Decembe
In her first public comments
in two months, Yellen said the economy was improving to the point that policymakers soon could nudge up the benchmark federal funds rate for the first time since Decembe
in two months, Yellen said the economy was improving to the point that policymakers soon could nudge up the benchmark
federal funds rate for the first time since December.
Loans under the new credit facility bear interest, at our option, at (i) a base
rate based on the highest of the prime
rate, the
federal funds rate plus 0.50 % and an adjusted LIBOR
rate for a one - month interest period
in each case plus a margin ranging from 0.00 % to 1.00 %, or (ii) an adjusted LIBOR
rate plus a margin ranging from 1.00 % to 2.00 %.
In a unanimous decision, the Committee left the target range
for the
federal funds rate unchanged at 1-1/2 to 1-3/4 percent.
We do support, however, changes to the
funding and management of the
federal employees» pension plans, including the move to more equitable contribution
rates, changes
in retirement provisions
for new employees, among others.
ER: Since the most recent increase
in the target
for the
federal funds rate last December, the economy has made further progress toward achieving the Federal Reserve's dual mandate (maximum sustainable employment and stable p
federal funds rate last December, the economy has made further progress toward achieving the
Federal Reserve's dual mandate (maximum sustainable employment and stable p
Federal Reserve's dual mandate (maximum sustainable employment and stable prices).
Loans under the new credit facility bear interest, at the Company's option, at (i) a base
rate based on the highest of the prime
rate, the
federal funds rate plus 0.50 % and an adjusted LIBOR
rate for a one - month interest period
in each case plus a margin ranging from 0.00 % to 1.00 %, or (ii) an adjusted LIBOR
rate plus a margin ranging from 1.00 % to 2.00 %.
Borrowings under the credit facility bear interest, at our option, at (i) a base
rate based on the highest of the prime
rate, the
federal funds rate plus 0.50 %, and an adjusted LIBOR
rate for a one - month interest period plus 1.00 %,
in each case plus a margin ranging from 0.00 % to 0.75 %; or (ii) an adjusted LIBOR
rate plus a margin ranging from 1.00 % to 1.75 %.
Loans under the credit facility bear interest, at the Company's option, at (i) a base
rate based on the highest of the prime
rate, the
federal funds rate plus 0.50 % and an adjusted LIBOR
rate for a one - month interest period plus 1.00 %,
in each case plus a margin ranging from 0.00 % to 0.75 % or (ii) an adjusted LIBOR
rate plus a margin ranging from 1.00 % to 1.75 %.
«A number of participants indicated that the stronger outlook
for economic activity, along with their increased confidence that inflation would return to 2 per cent over the medium term, implied that the appropriate path
for the
federal funds rate over the next few years would likely be slightly steeper than they had previously expected,» the Federal Open Market Committee said in the records of its March 20 - 21 m
federal funds rate over the next few years would likely be slightly steeper than they had previously expected,» the
Federal Open Market Committee said in the records of its March 20 - 21 m
Federal Open Market Committee said
in the records of its March 20 - 21 meeting.
There is the possibility that the
Federal Reserve could raise rates this year as many as four times, taking the short - term federal funds rate above 2 % for the first time in a
Federal Reserve could raise
rates this year as many as four times, taking the short - term
federal funds rate above 2 % for the first time in a
federal funds rate above 2 %
for the first time
in a decade.
On March 31st the
Federal Reserve raised its benchmark interest
rate for the sixth time
in 3 years and signaled its intention to raise
rates twice more
in 2018, aiming
for a fed
funds target of 3.5 % by 2020.
While the
Federal Reserve decided
in December to increase short - term interest
rates, that hasn't yet translated into significant increases
in deposit
rates paid out by banks on safe, federally insured deposits — the kind of accounts consumers might want to use
for an emergency
fund or
for parking cash they expect to use
in the next month or two.
By Aaradhana Ramesh and Krishna Eluri (Reuters)- U.S.
fund managers kept their recommendations
for equity holdings steady
for a third month
in November, and near their lowest since the financial crisis, pending a widely - expected
Federal Reserve
rate hike, a Reuters poll found.
Some reasons
for the fall include: the
Federal Reserve lowering the Fed
Funds rate, declining inflation, improved monetary efficiency, economic slack, the continued global demand
for US assets, and relative stability
in the US vs. other markets.
The idea that real interest
rates — that is, adjusted
for inflation — will be lower than they have been historically is reflected
in the pronouncements of policymakers such as
Federal Reserve chair Janet Yellen, the medium - term forecasts of official agencies such as the Congressional Budget Office and the International Monetary
Fund and the pricing of government bonds whose payments are tied to inflation.
... As the size of the balance sheet and the quantity of excess reserves
in the system decline, the
Federal Reserve will be able to return to its traditional means of making monetary policy — namely, by setting a target for the federal fund
Federal Reserve will be able to return to its traditional means of making monetary policy — namely, by setting a target
for the
federal fund
federal funds rate.
In determining the timing and size of future adjustments to the target range
for the
federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation.
If
rates do start rising steadily
in the near future, it will probably happen when the
Federal Reserve raises the federal funds rate (used for inter-bank le
Federal Reserve raises the
federal funds rate (used for inter-bank le
federal funds rate (used
for inter-bank lending).
The
Federal Reserve Bank is in charge of the federal interest rate — or fed funds rate, as it is commonly called — which is the overnight interest rate banks charge for short - term
Federal Reserve Bank is
in charge of the
federal interest rate — or fed funds rate, as it is commonly called — which is the overnight interest rate banks charge for short - term
federal interest
rate — or fed
funds rate, as it is commonly called — which is the overnight interest
rate banks charge
for short - term loans.
Under current
federal law, long - term capital gains
for individual investors
in the
fund are taxed at a maximum
rate of 15 %.
In July, during one of their regularly scheduled meetings,
Federal Reserve officials «decided to maintain the target range for the federal funds rate at 1/4 to 1/2 percent.
Federal Reserve officials «decided to maintain the target range
for the
federal funds rate at 1/4 to 1/2 percent.
federal funds rate at 1/4 to 1/2 percent.»
In such a world, «announced changes in the federal funds rate therefore have no implications for economic activity, or the rate of inflation» (Jordan 2016: 382
In such a world, «announced changes
in the federal funds rate therefore have no implications for economic activity, or the rate of inflation» (Jordan 2016: 382
in the
federal funds rate therefore have no implications
for economic activity, or the
rate of inflation» (Jordan 2016: 382).
As shown
in the figure above, the long - term trend
in mortgage
rates largely reflects the path of the 3 - month Treasury Bill
rate, which is proxy
for the
federal funds rate.
For several years now, the Fed has been purchasing mortgage - backed securities and holding the
federal funds rate near 0 %
in order to stimulate a sluggish economy.
If that weren't enough to light a fire under would - be home buyers, the
Federal Reserve recently announced that it would increase the short - term federal funds rate for only the second time in a
Federal Reserve recently announced that it would increase the short - term
federal funds rate for only the second time in a
federal funds rate for only the second time
in a decade.
At the end of 2015, Fed officials announced they would raise the
federal funds rate for the first time
in years.
In a related statement, Fed officials said: «Given the economic outlook, and recognizing the time it takes
for policy actions to affect future economic outcomes, the Committee decided to raise the target range
for the
federal funds rate to 1/4 to 1/2 percent.»
Despite a previous increase
for the
federal funds rate, and additional hikes looming on the horizon, home mortgage
rates have actually dropped
in recent weeks.
As we saw
in the months following The Great Recession, when economic growth slowed abruptly, the Fed moved to jumpstart the economy by lowering its target
for the
federal funds rate.
In a statement following its two - day meeting covering July 25 and 26, the
Federal Open Market Committee (FOMC or the Committee) decided to «maintain the target range for the federal funds rate at 1 to 1.25 percent&
Federal Open Market Committee (FOMC or the Committee) decided to «maintain the target range
for the
federal funds rate at 1 to 1.25 percent&
federal funds rate at 1 to 1.25 percent».
Based upon the Fed's guidance, it looks like we are
in line
for two more
rate bumps this year, which would bring the
federal funds target
rate up to 1.75 % -2 %.
«A number of participants indicated that the stronger outlook
for economic activity, along with their increased confidence that inflation would return to 2 percent over the medium term, implied that the appropriate path
for the
federal funds rate over the next few years would likely be slightly steeper than they had previously expected,» the Federal Open Market Committee said in the records of its March 20 - 21 m
federal funds rate over the next few years would likely be slightly steeper than they had previously expected,» the
Federal Open Market Committee said in the records of its March 20 - 21 m
Federal Open Market Committee said
in the records of its March 20 - 21 meeting.
The Fed also indicated that it expects three more
rate escalations
in 2018, with a few more after that, making the long - term forecast
for the
federal funds rate 2.75 %.
Although economic conditions will evolve
in a manner that will warrant further gradual increases
in the
federal funds rate, the
federal funds rate is likely to remain,
for some time, below levels that are expected to prevail
in the longer run.
This acceleration is partly due to the very expansionary monetary and fiscal policy settings that have been
in place
for some time, with the
federal funds rate at 1 per cent, and the
federal fiscal balance swinging from a surplus of 2 1/2 per cent of GDP
in 2000 to a 3 1/2 per cent deficit
in 2003.
Instead, it sets a target
for the
federal funds rate and engages
in actions to influence the
rate towards the target.
When the
Federal Reserve makes it more expensive for banks to borrow by targeting a higher federal funds rate, the banks in turn pass on the higher costs to its cus
Federal Reserve makes it more expensive
for banks to borrow by targeting a higher
federal funds rate, the banks in turn pass on the higher costs to its cus
federal funds rate, the banks
in turn pass on the higher costs to its customers.
Private student loans make up a small percentage of the total student loan market, but many more borrowers have moved toward private lenders to help
fund their education
in the past several years.Private student loans offer some benefits over
federal student loans, including the potential
for a lower interest
rate and extended repayment terms.