Sentences with phrase «moderate rise in interest rates»

Not exact matches

«If the rise in interest rates is moderate and comes as a result of improvement in the overall economy, that need not preclude stocks from performing well.»

A forecast of a secular rise in interest rates from current levels implies that US economic growth will at least hold at a moderate pace.

All in all, the Fed continues to expect inflation to rise gradually toward 2 % over the medium term as the labor market improves further and the transitory effects of energy price declines and other factors dissipate, but the pace for hikes in interest rates could well be moderate, as the Fed has been indicating.

As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.

The bank said the biggest risk to maintaining manageable affordability levels would be a sharp rise in interest rates, but many analysts believe that is unlikely to occur as long as global economic growth remains moderate and inflation pressures soft.

A strong local economy driven by the oil sector combined with low inventory led to the robust increases, but eroding affordability and interest rates that are expected to rise will likely lead to more moderate price appreciation in the second half of the year.

Price increases for U.S. commercial real estate assets have started to moderate in recent months, perhaps as a result of the expectation of rising interest rates.

These Fed actions are unlikely to derail the moderate improvements in growth and employment, but rising interest rates will reduce mortgage originations and put a cap on house sales in 2017.