Sentences with phrase «lead to a higher interest rate in»

Not exact matches

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.
In the late 1970s he was the first to predict a massive wave of inflationary pressures that would lead to record - high interest rates between 1980 and 1982.
Also, in general, a stronger economy leads to a higher interest rates, with or without Fed involvement.
In the days to come the Fed will have to prove that a new set of tools for managing interest rates will work as expected; see how higher U.S. rates affect domestic and global financial conditions; and hope that weak world demand and commodity prices do not lead to an overall bout of deflation and force the Fed to reverse course.
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 growtIn 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 growtin the face of high underemployment and weak wage growth.
The truth is that these mega-hits do raise awareness (for a while), but no one can sustain that level of interest, and in many ways it leads to high viewership and click rates not not necessarily high sales or loyal customers.
Millions of people in the US have had to get a credit check for a mortgage, so when senators suggest that Wells Fargo employees opening and closing a credit card without a customer's knowledge may affect a credit score and lead to a higher interest rate, it's simple to understand the direct ramification.
Higher wages can point to higher inflation, which, in turn, could lead the Fed to raise interest rates more aggressHigher wages can point to higher inflation, which, in turn, could lead the Fed to raise interest rates more aggresshigher inflation, which, in turn, could lead the Fed to raise interest rates more aggressively.
As Scotiabank mentioned in a note last week: «Higher interest rates are going to make the burden of refinancing the debt considerably heavier, and as more money goes into servicing the debt, it means less money is available to spend on other things, which could lead to less infrastructure spending and increased austerity.»
Instead, a sharp shift in fiscal policy led to high real interest rates that stimulated a strong demand for the dollar, which caused the dollar to appreciate sharply.
The potential for a lower corporate tax rate may also lead to interesting opportunities in BB - rated high - yield bonds.
In January, expensive commodities led to inflation, higher interest rates in developing markets, riots in the Arab world, and lower economic growtIn January, expensive commodities led to inflation, higher interest rates in developing markets, riots in the Arab world, and lower economic growtin developing markets, riots in the Arab world, and lower economic growtin the Arab world, and lower economic growth.
In addition, we think the upward momentum in US interest rates is likely to lead to higher bank net - interest income growth, and as a result, greater profitability potentiaIn addition, we think the upward momentum in US interest rates is likely to lead to higher bank net - interest income growth, and as a result, greater profitability potentiain US interest rates is likely to lead to higher bank net - interest income growth, and as a result, greater profitability potential.
That said, if the economy really starts growing gangbusters again, the Fed could start raising interest rates, causing a commensurate jump in US treasury yields, which will lead to higher savings interest, CD interest, and dividend yield payout ratios.
This could lead to select opportunities among Energy, Technology, and Financials stocks in the U.S.. However, any notable economic improvements could close the window on such opportunities, and lead to higher short - term interest rates in the U.S. sooner than is currently priced into the markets.
In some instances, refinancing can even lead to a higher interest rate, instead of lowering it.
The «taper tantrum» of 2013 unwound those moves, leading to sharp moves higher in real interest rates and a sharp move lower in gold.
While the positives include the unemployment rate falling to 42 - year lows, a weaker pound sterling is leading to a spike in consumer inflation; in the event of a negative outcome in the negotiations with the European Union, the UK currency could slide further, leading to a rise in consumer prices and leaving the Bank of England in a very precarious situation in which easing interest rates will be ruled out due to high inflation, and hiking rates will lead to a slowdown in economic activity.
The selling has raged on in the days since, fueled partly by fear that higher inflation would lead the Fed to accelerate its interest rates hikes and weaken the economy and the stock market.
Contacting potential overseas agents while they are still interested will lead to a higher conversion rate, but will also set an important precedent for communication: no matter where they are based, overseas agents will then trust you to stay in touch and reply quickly to any queries they have.
The point which Ben very appropriately emphasizes is that unmanaged secular stagnation in one place is contagious — that a higher level of saving over investment leading to low interest rates in one place, leads to current account surplus, leads to a capital outflow, which then leads to currency depreciation, leads to currency appreciation in other places, and leads therefore to spreading low demand and low interest rates everywhere.
In fixed income, rate hikes by the Fed have led to higher interest rates on the short end of the yield curve, while longer - term rates have remained more contained (despite recent increases following tax reform).
We believe that inflation will continue to increase moderately in 2018, which likely will lead to moderately higher interest rates as well.
Michael Hasenstab: If the Fed moves first and interest rates in the United States start to normalize, then higher US rates combined with stable rates in Japan or Europe should lead to a stronger US dollar, at least temporarily.
In 2012, Eisner signed off on a $ 3.5 million settlement after Bharara's office alleged that GFI Mortgage Bankers, a company that originates loans and has been led by Eisner since 1983, charged higher interest rates and fees on mortgages to minority borrowers than to whites with similar financial profiles.
And with the majority of states now implementing more rigorous academic standards aiming to help more students graduate better prepared for life after high school, and with the nation watching to see if this shift indeed leads to improved outcomes, interest in the graduation rate is unlikely to subside any time soon.
Typically in a recovery you have rising interest rates which lead to higher mortgage rates, but that has not been the case as of late.
In addition, to the extent higher realized inflation leads to higher inflation expectations — and in turn, higher interest rates — financial stocks, another big value sector, also benefiIn addition, to the extent higher realized inflation leads to higher inflation expectations — and in turn, higher interest rates — financial stocks, another big value sector, also benefiin turn, higher interest rates — financial stocks, another big value sector, also benefit.
However, it can lead to higher interest rates, or denial of services, if your credit isn't in great standing since the lender is shouldering all of the risk.
In 1994 to early 1995, that illusion was destroyed as the bond market was dragged to higher yields by the Fed plus mortgage bond managers who tried to limit their interest rate risks individually, leading to a more general crisis.
Generally speaking, a better credit history will result in a lower interest rate on the loan, whereas a credit history with past due payments, previous defaults, and collections will often lead to a higher interest rat, to offset the lender's increased risk in offering credit to a borrower with poor credit.
Ideally when the interest rate is high on the current credit card one holds, at times the monthly payments may extend or the amount that is paid is high, which at times consumers are not able to keep pace with and tend to default in their payments, leading to a dip in their credit scores and a negative...
Though they tend to lower bond prices in the short term, interest - rate hikes have generally led to higher fixed - income returns down the road for investors who have stayed the course.
Against the advantage of the lower payment at the beginning of the loan, you should weigh the risk that an increase in interest rates will lead to higher monthly payments in the future.
If persistent zero interest rates and quantitative easing that were intended to lead investors to take more risk in pursuit of higher yielding assets led to dampened volatility, we should expect greater financial market volatility in 2015 as the Fed pulls back from its zero rate policy.
According to a CBC News article, a higher interest - rate environment could lead to a significant increase in Canadian household debt financing, as opposed to consumer spending.
If the economy continues to improve in 2017 and President Trump's housing policies lead to strong economic and housing growth, there will be higher interest rates.
1980 Bank Crisis to Present Inflation, high interest rates, deregulation and recession created an economic and banking environment in the 1980s that led to the most bank failures in the post-World War II period.
While it is not a problem right now (although the consumer price index did just rise the most in 10 months), there are several strong economic factors emerging that typically lead to higher prices to the consumer and thus higher mortgage interest rates down the road.
A poor credit score will result in a higher interest rate leading to thousands of extra dollars in interest expense over the life of a loan.
A higher debt load may lead to higher interest rates which will, in turn, affect your overall payment.
It's a trade - off, you can start with a lower monthly payment knowing interest rates may increase in the future, leading to a higher monthly payment.
This would be shown in your credit history and could lead future lenders to impose higher interest rates to avoid potential losses in case of early repayment.
Inflation also leads to higher interest rates, which in turn leads to lower bond prices.
For example, the double - digit inflation of the 1970's was caused by banks keeping interest rates low in an attempt to stimulate a weak economy, at a time when imported inflation from the oil shock was high (leading to stagflation).
You have to weigh the risk that an increase in interest rates could lead to higher monthly payments in the future against the disadvantages.
Keeping up with your credit is important, since a poor credit report can result in higher interest rates on loans, and can even lead to you paying more for different financial products and services, including paying higher insurance premiums.
However, it is important to note that the lack of security present in unsecured loans will lead the interest rates attached to them to be much higher than secured loans.
While I can see that using low interest rates in a cash flow valuation model leads to higher company valuations, the unanswered question remains how long interest rates will stay low.
a) run - up in the debt, which may lead to much high costs when interest rates normalize.
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