Sentences with phrase «lower fed funds»

For example, if inflationary pressures were high and interest rates were moving up, the Fed could not predictably lower the Fed Funds rate by easing monetary policy.

Most of the pressure is toward a lower Fed funds target rate, but given that the Fed has sterilized their prior cuts, I don't see what great good it will do.

The Fed influences where Fed funds trades through open market operations, where they lower the Fed funds rate by increasing the supply of reserves to the system through temporary repurchase transactions, and outright purchases of securities through the creation of new credit, thus expanding its balance sheet (a permanent injection of liquidity).

The Fed will lower Fed funds rates by more than they want to because they are committed to reflating dud assets, and the loans behind them.

Now, this doesn't mean that the FOMC isn't going to eventually lower the Fed funds rate to 3 % at some point in 2008.

Conversely, when the FOMC votes to lower the Fed Funds Rate, the economy is pushed to expand.

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.

That's when the Federal Reserve lowers the fed funds rate, and all other interest rates fall as a result.

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.

In one sense, the Fed created an ice age for US interest rates by lowering the Fed Funds rate essentially to zero and by printing money to buy US Treasury and mortgage backed securities, putting further downward pressure on longer term interest rates.

On the other hand, since such subtleties are wasted on the public, they will likely have to grab the blunderbuss of lowering the Fed funds target, and fire a few times.

Rather than merely promise that Fed funds will remain low for so many years, offer banks a way to have a guarantee of low Fed funds rates for that time period.

My opinion: low Fed funds rates foster speculation in healthy assets.

In this present environment, I am most concerned with how low Fed funds trades on a daily basis.

The FOMC raises and lowers the fed funds rate as it sees fit to promote or curtail borrowing activity by businesses and consumers.

When the Fed's interest rate policy is stuck at its zero bound, he argued that «a decline in inflation expectations drives up real interest rates and thereby increases the real cost of credit which can not be offset by simply lowering the fed funds rate.

In one sense, the Fed created an ice age for US interest rates by lowering the Fed Funds rate essentially to zero and by printing money to buy US Treasury and mortgage backed securities, putting further downward pressure on longer term interest rates.

As a result, you'll generally observe that when the Fed lowers the Fed Funds Rate, banks often lower other «offered» rates like the Prime Rate and LIBOR, but they also simultaneously lower deposit rates.

Second, the low Fed funds rate touched off a flurry of adjustable - rate home loans, which Greenspan himself inadvisably endorsed at one point.

The last big program the Fed has been using to help the economy recover is a historically low Fed Funds rate.

As others have commented, and I can't remember where, the low Fed funds rate reduces the powers of the regional Federal Reserve banks, and raises the power of the NY Fed and the Board of Governors, because the regional Federal Reserve banks don't have much play in the new lending programs.

The Federal Reserve Open Market Committee lowered the Fed funds target and discount rate by 75 basis points.

In an ordinary recession, lowering the Fed funds rate can stimulate the banks to lend.

In past economic cycles, there were sectors of the economy that could be stimulated by the Fed lowering the Fed funds rate.

The low Fed Funds rate keeps all high quality short - term bond yields very low and pushes investors into longer maturity bonds.

Not exact matches

The Fed's low interest rate policy has driven more and more money into bond funds as investors search for higher yields.

«I don't see raising the target range for the fed funds rate above its current low level in 2015 as being consistent with the pursuit of the kind of labor market outcomes that we are charged with delivering,» he said.

The economy may be healthy enough for them to raise interest rates, but the new 0.5 percent to 0.75 percent target for the benchmark fed funds rate, up a quarter point from where it had been, remains far below the historical norm — and, by all indications, the Fed still expects rates to stay low for at least a few more yeafed funds rate, up a quarter point from where it had been, remains far below the historical norm — and, by all indications, the Fed still expects rates to stay low for at least a few more yeaFed still expects rates to stay low for at least a few more years.

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.

-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-...]

Since bank reserves held at the Fed are far above their historical levels, marginally raising or lowering reserves — which is how the Fed hits its funds rate target (ffr)-- don't move the ffr the way they used to.

DR's simulations assume that last dot climbs in time to give the Fed some height to drop from when the next downturn hits (importantly, he stresses that the neutral funds rate is very likely lower than it used to be), but, as I argue in the piece, with some evidence from market expectations of the funds rate, I'm skeptical.

Inflation rates have been very low in recent years, which is another reason the Fed hasn't felt compelled to raise the federal funds rate.

Indeed, the prices of money (Fed funds), savings (inflation term premium), capital (credit spreads), labor (wages), trade (USD), and insurance (volatility) are all historically low, which is resulting in exceptionally easy financial conditions.

Fiscal support started strong both here and in Europe, as did (see second figure) monetary policy (the negative numbers reflect the Fed's lowering and holding down the Fed funds rate).

If the Fed returned Fed Funds to its lower bound level in the context of a recession, I would expect to see 10 year rates fall substantially perhaps to 1 percent without any QE or forward guidance.

In the wake of the financial crisis, the Fed lowered the federal funds rate — the main determinate of interest rates — to 0 %.

But rates still remain low, historically speaking — the Fed's now targeting an FFR (Fed funds rate) of just 1.25 - 1.5 % — and inflation remains below the Fed's target.

Even if the Fed makes good on its plan to raise short - term interest rates, fund managers expect them to move slowly and expect rates to remain low for a lot longer.

Accordingly, the Federal Reserve used its monetary policy tools to lower the targeted Fed funds rate to zero.

As a result, the 10 - year Treasury and the Fed Funds rate have followed lower as well.

Currently at 1 % -1.25 %, fed funds remains historically low.

If we don't hear about ETFs and hedge funds blowing up after what happened yesterday, it means the PPT (NY Fed + the Treasury's Working Group on Financial Markets — the «PPT» — which both have offices in the same building in lower Manhattan) has monetized and covered up those financial road - side bombs.

As savers, pension funds and insurance companies sought relief from the pain of low interest rates, the issue now is «whether they ended up taking up risks that were greater than they realized,» said Donald Kohn, the Fed's former vice chairman under Bernanke.

He did so again in 2001 after the World Trade Center was attacked, when he led the FOMC to immediately reduce the Fed funds rate from 3.5 percent to 3 percent — and in the months that followed reducing that rate to as low as 1 percent as the economy and stock markets remained sluggish.

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

Even if the Federal Reserve raises the Fed Funds rate from 0.25 % to 2 %, interest rates are still low and what's more important is following the market (Treasury yields).

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.

When investors begin to focus on the potential for Fed rate hikes, short - term bonds will almost certainly begin to experience lower returns and — depending on the type of fund — greater volatility than they have in years past.

The Fed also anticipates that economic conditions — including low rates of resource utilization — are likely to warrant exceptionally low levels for the fed funds rate at least through mid-20Fed also anticipates that economic conditions — including low rates of resource utilization — are likely to warrant exceptionally low levels for the fed funds rate at least through mid-20fed funds rate at least through mid-2013.