Sentences with phrase «likely increase interest rates»

Moreover, the central bank also indicated that economic growth was picking up, as was inflation, and that it would likely increase interest rates another two times this year.

Not exact matches

«A lot of new jobs are generated by small and midsize businesses, and if the interest rate increases dramatically, it could slow investment to this sector,» Cooley says, adding that the increase in interest rates is also likely to further strengthen the dollar.

However, the Federal Reserve increased its benchmark interest rate in mid-December, which is likely to have a direct impact on fundraising and force down the high valuations of many of these late - stage private companies, venture capitalists and economists say.

The Fed is likely to announce at 2 p.m. EDT (1800 GMT) that it is holding interest rates steady, but it could encourage expectations of a rate increase in June.

Yet the current situation actually creates a double positive for stocks: interest rates are likely to stay lower for longer, which helps support equity valuations while also providing investment - grade issuers with the ability to borrow cheaply and increase shareholder value.

If the Fed increases interest rates rapidly, this chokes off the flow of credit available and makes businesses less likely to spend.

The central bank is likely due for a pause after raising interest rates twice this summer, but the strength of the labour market will keep Bay Street talking about a third increase before the year is out.

Federal Reserve keeps interests rates where they are, with an upcoming increase likely Short - term interest rates stayed where they were on Wednesday, but the Federal Reserve indicated that it will gradually increase them within the next few months, the Wall Street Journal first reported.

In the US and Europe, deflationary pressures increase the ability of central banks to loosen monetary conditions, and because too many economists assume too easily that what is likely to be true in the US must be true everywhere, deflationary pressures in China are unleashing calls for lower interest rates and greater credit expansion in China.

Jesse Edgerton, an economist at JPMorgan Chase, said the Fed's increased confidence was likely to translate eventually into more interest rate increases than the three Fed officials predicted.

Investors are likely skittish because the prospect of increased inflation may force the Fed to raise interest rates faster than expected.

In return for this lower rate, the borrower must accept the risk that the interest rate on the loan most likely will rise in the future, thereby increasing the number of monthly mortgage payments.

The second phase occurred from around mid year, when it became widely expected by the market that the US economy was going to have a soft landing, and that no further increases in US interest rates were likely.

This implies any given increase in policy interest rates is likely to have a bigger economic impact than was the case pre-crisis.

It may seem counterintuitive that better outcomes for working people would make the stock market go down, though the positive data means that the interest rate increases will likely continue unabated, a possibility means an end to the relatively free money.

Indeed, because the Trump proposal would redistribute after - tax income towards those most likely to save it, push up long - term interest rates because of debt pressures, increase uncertainty and the advantages of overseas production, it is as likely to retard growth as to accelerate it.

The impact of a stronger dollar is likely to remain a hurdle for earnings, but U.S. equities are also contending with high relative valuations and a likely increase in interest rates by the Federal Reserve (Fed) in the second half of this year.

Were the US to impose capital controls, the trade surplus countries would likely increase investment and reduce interest rates, thereby shifting more wealth from households (consumers) to borrowers (businesses).

These principles lay out a roadmap about how exit is likely to occur: First, the end of reinvestment of maturing securities; second, an increase in short - term interest rates, and, third, the gradual sale of mortgage backed securities to shrink the magnitude of excess reserves in the system and ultimately to restore the Fed's balance sheet to a predominately all - Treasury portfolio.

While it is widely believed that interest rates (and also mortgage rates) are heading higher over the long term, the rate of increase is likely to be extremely slow.

If inflation rises, The Fed is likely to increase interest rates faster to try and slow inflation's acceleration.

When the prime rate increases, the amount of interest you owe on your unpaid balances will likely increase.

I continue to expect that we will gradually increase our exposure to inflation - protected securities and commodities on substantial weakness in these areas, but as inflation pressures are most likely still several years away, our primary concern here is with fresh credit weakness, and that concern still translates into a moderate exposure to interest rate fluctuations.

The Fed would likely reduce its reinvestment of its mortgage - backed securities in the first half of next year, following an interest rate increase, while the BOJ and ECB both reduce asset purchases around the middle of 2016.

Concerns about the Federal Reserve, which will commence its two - day FOMC meeting this morning, and likely end the gathering with an interest - rate increase and worries about looming inflation contributed to the poorer trend yesterday, as did some overdue profit taking.

Interest rates will likely increase in 2018, but a cautious central bank won't act boldly — even if the Canadian economy booms

In December, the Federal Reserve increased interest rates for the fifth time in this cycle, and with a stable of more hawkish Fed governors rotating into voting positions, another three or even four rate hikes look likely in 2018.

A researcher predicts new sales of fixed annuity products will likely increase in the wake of the 0.25 percent jump in a key interest rate the Federal Reserve announced Wednesday.

With higher mortgage interest rates, any increase in prices will likely be met with a subsequent fall in sales.

There will likely be some softening in the market as interest rates continue to increase, as expected, and valuations continue to mature.

On the other hand, the sharp increase in interest rates is likely to serve as a serious headwind to Russia's already declining economy.

So if interest rates stay substantially low with few prospects for increase it's likely the issuer will call or buy back the bond before maturity.

Monetary policy has less room to maneuver when interest rates are close to zero, while expansionary fiscal policy is likely both more effective and less costly in terms of increased debt burden when interest rates are pinned at low levels.

While we anticipate interest rates and inflation are likely to continue moving up, we believe potential increases in both should be gradual, and that type of gradual movement shouldn't derail the markets.

The fall in sentiment and the apparent softness in retail sales in March are likely to reflect several factors including the March interest rate increase, the publication of the weak December quarter national accounts and associated commentary, and the recent steep rise in petrol prices.

The Fed leaves its benchmark interest rate steady, but it signaled that an increase was likely at its next policy meeting in March.

These numbers will likely be different for each franchisee, as you may decide to make more of a down payment (which would lower your payments), you may decide to finance your equipment over a longer period of time (which will also lower your payments), and you may have to pay a higher interest rate (which would increase your payments).

The rising interest - rate environment appears likely to increase how much performance varies among equities, as valuations are adjusted to reflect more accurately the differences in companies» growth outlooks, cash flows and balance sheets.

Those higher interests rates increase the financial burden on your country, and that in turn makes default more likely.

This likely doesn't bode well for future S&P 500 returns, especially when interest rates rise - increasing the cost of debt repayment and adjusting expected returns and valuations.

U.S. - led economic reflation, Federal Reserve rate increases and expectations of fiscal stimulus are likely to widen the gap between U.S. and overseas interest rates.

If these conditions take hold, interest rates would likely remain at low levels for a long time, despite the Fed's likely increase in rates later this year.

We believe that inflation will continue to increase moderately in 2018, which likely will lead to moderately higher interest rates as well.

«While Pensions overall continued to have solid returns against a backdrop of challenging macroeconomic factors, the decline in long - term interest rates has likely increased plan liabilities,» said Scott MacDonald, managing director, Pensions, RBC Investor & Treasury Services.

When a Fed rate hike occurs, you can expect variable interest rates to rise in the future, but it won't happen overnight and it will likely mimic the increase of the Fed rate hike.

If you have variable interest rates, a Fed rate hike will likely result in an increase over time.

«We have an opportunity, if voters in town agree with the referendum, to have new debt in place with a minimal impact to residents,» said Wilson, adding that with currently low interest rates, residents likely would see no tax increase during the first five years of the 15 - year bond sale and a minimal increase for the following 10 years.

If you lower your interest rate but increase your loan term length, your payment will likely fall, but you may also end up paying more over the life of your loan.

Insurance stocks will very likely see increased earnings from rising interest rates.

In my estimation, and many others, they are not likely to increase interest rates too much, or too quickly.