Sentences with phrase «keep fed funds»

Last week, Fed Chairman Ben Bernanke announced that the central bank will likely keep the fed funds rate near zero until late 2014.

The Fed's commitment to keep the Fed Funds rate low for an «extended period» also supports the shift into longer bonds as it gives investors the added confidence to switch into longer maturity bonds.

9) I had been critical of the FOMC over at RealMoney because they had not been injecting enough reserves into the banking system in order to keep the Fed funds rate at 5.25 %.

The Fed can keep the Fed funds rate low, but aside from the strongest borrowers, the yields that lesser borrowers borrow at are high, and reflect the intrinsic risk of loss, not the temporary provision of cheap capital to banks and other strong borrowers.

ShareThe Federal Reserve's Open Market Committee has decided to keep their Fed Funds Rate near zero possibly through 2013.

The Federal Reserve's Open Market Committee has decided to keep their Fed Funds Rate near zero possibly through 2013.

It will keep the fed funds rate at its current near - zero level «for a considerable time» after it finally ends QE, especially if the core inflation rate remained below 2 percent.

April 26 - 27: All but one member voted to keep the fed funds rate the same.

So, it seems to me the fed was reacting to desired demand for currency, desired demand for central bank reserves, and required demand for central bank reserves while keeping the fed funds rate on target.

January 26 - 27, 2016: The Committee kept the fed funds rate at 0.5 percent.

October 31 - November 1: The Committee kept the fed funds rate at 1.25 percent.

July 25 - 26: The Committee kept the fed funds rate at 1.25 percent.

January 31 - February 1: The FOMC kept the fed funds rate at 0.75 percent.

July 26 - 27: The FOMC kept the fed funds rate at 0.5 percent.

May 2 - 3: The Fed kept the fed funds rate at 1 percent.

The Fed could have kept the fed funds rate high, rewarding savings, perhaps leading to a lower cuurent account deficit as well.

Not exact matches

Competition for cash has returned with a vengeance, after the Fed stifled it in 2008 to keep the cost of funding for banks to near zero so that they could maximize their profits in order to rebuild their capital after teetering on the verge of collapse.

It has done this by offering attractive interest rates on banks» reserves held at the Fed, so the banks keep their excess funds there instead of lend them out to borrowers in the economy.

-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-...]

And better yet, if the Fed can keep the pensions thinly solvent by pumping up the stock market, Congress and State Governments can defer the inevitable taxpayer bailout of public pension funds — for now.

At the same time, the Fed kept the federal funds rate at the lower zero bound.

Along those lines, some observers have suggested that it's necessary to raise the target for the fed funds rate soon in order to keep inflation under control.

Interest rates have continued to be pushed lower and lower and lower and most of this is because the Fed keeps on adjusting that federal fund's rate and adjusting interest rates down in the way that they do that is by putting cash into the market and buying back bonds or short - term bonds with the federal fund's rate.

By paying interest on excess reserves (IOER), the Fed rewards banks for keeping balances beyond what they need to meet their legal requirements; and by making overnight reverse repurchase agreements (ON - RRP) with various GSEs and money - market funds, it gets those institutions to lend funds to it.

Specifically, by altering the supply of bank reserves, the Fed could influence the federal funds rate — the rate banks paid other banks to borrow reserves overnight — and so keep that rate on target.

The Fed has kept the funds rate near zero for years now, as part of a broader stimulus program designed to spur the economy.

In keeping with this added cautiousness, members of the FOMC revised down their median projections for the Fed funds rate to 0.875 % by end - 2016 and 1.875 % by end - 2017, roughly equivalent to two hikes in 2016 (from four projected in December) and four in 2017, while keeping their economic forecast broadly unchanged.

As long as the hedge fund traders and fast - money boys believe the Fed can keep everything pegged, we may limp along.

In the meantime, he may be trusting that U.S. financial institutions with $ 1.9 trillion of excess reserves — funded wholly by the Fed's quantitative easing — will keep banks afloat with enough of a cushion to withstand any coming storm.

This would test the resilience of the economic expansion, and if the economy keeps growing as long bonds rise in yield, then match the rises in long yields with rises in the Fed Funds rate.

Fed Chairman Greenspan tried to stop the severe stock market decline by lowering the Fed Funds rate to 1 % in mid 2003 and keeping it at that level for a year.

When the Fed «raises» rates, what it alters is the Federal Funds rate — the rate that banks charge each other for overnight loans to cover their cash needs (every bank is required to keep a certain amount of funds, called reserves, with the Federal Reserve and these funds can be borroFunds rate — the rate that banks charge each other for overnight loans to cover their cash needs (every bank is required to keep a certain amount of funds, called reserves, with the Federal Reserve and these funds can be borrofunds, called reserves, with the Federal Reserve and these funds can be borrofunds can be borrowed).

This led PIMCO to tweak its secular outlook on the economy earlier this month to represent the sentiment that the Fed would keep its peak funds rate low during this economic cycle — what it termed the «new neutral.»

But you get the 10 - year stuck and it keeps moving Fed funds up — You'll have a flat curve.

Then, just move Fed funds to keep the yield curve slope near that 0.25 % slope.

In a floor system, banks are kept flush with excess reserves, and monetary control is exercised, not be adjusting the quantity of reserves so as to achieve a particular equilibrium federal funds rate, but by manipulating the interest rate the Fed pays on banks» required and excess reserves holdings, alone or along with the Fed's overnight reverse - repo (ON - RRP) rate.

This has of course not kept a Fed economist from concluding in mid 2009 that the Fed's past policy stance as well as the «rules» would theoretically require the Fed to cut the Fed Funds rate well below zero (pdf).

Moreover, by keeping short - run interest rates near zero for more than seven years, paying interest on excess reserves (IOER) above the effective fed funds rate, and convincing markets that rates would stay low for a long time (forward guidance), the Fed has increased the reach for yield and appears more interested in priming Wall Street than in letting markets set interest rates and allocate credfed funds rate, and convincing markets that rates would stay low for a long time (forward guidance), the Fed has increased the reach for yield and appears more interested in priming Wall Street than in letting markets set interest rates and allocate credFed has increased the reach for yield and appears more interested in priming Wall Street than in letting markets set interest rates and allocate credit.

As funding for education programs face dramatic cuts under some plans, we must work to ensure keeping students well - fed and ready to learn remains a top priority.

The funding allows the school to keep the Government backed Feed - in - Tariff, enabling Manningtree High School to produce an income of # 147,230 over the projects 20 year lifespan.

This means the Fed will keep its federal funds rate in the low range of 0 % — 0.25 %.

The Fed has kept the funds rate near zero for years now, as part of a broader stimulus program designed to spur the economy.

The introduction of money market funds (and the elimination of regulation Q, a ceiling on credited interest rates) helped prolong the inflation of the 70s, because the Fed couldn't control liquidity the way that it used to; money market funds just kept supplying liquidity at interest rates investors found attractive.

That keeps the fund's duration low and CSJ shouldn't drop as much when the Fed raises rates.

But no; they coerced the investment banks into a settlement, and loosened the Fed funds rate 0.75 % when it should have kept policy tight, and not loosened at all, staying at 5.5 %.

Banks and thrifts have to keep non-interest bearing reserve funds at the Fed.

After years of keeping the short - term federal funds rate near 0 %, Fed officials are now raising it in small increments.

These include paying banks to keep funds parked with the Fed (called «Interest On Excess Reserves») or though a different, more complex method of swapping Fed - held debt for bank cash holdings (called a «Reverse Repo» agreement).

Another metric to keep your eye on is the Federal funds rate, which is the rate that banks charge when they make an overnight sale to other banks of the money that they keep deposited at the Federal Reserve (the Fed).

The Fed has a massive portfolio of these investments and as they mature or have been paid off (by refinancing) the central bank had been re-investing the inbound funds into more purchases, keeping its portfolio at a constant size.