Last, strong employment numbers out of the U.S. pointed to
possible Fed rate hikes, which is always a catalyst for a bond market sell - off.
Keep in mind that currently, low interest rates have caused everyone in the real estate profession to hold their breaths for
a possible fed rate increase, which can mean a fixed mortgage at these low rates may be a better chance for more security in the long run.
Indicators of a strengthening economy have market participants speculating as to the timing of
a possible Fed rate increase.
Not exact matches
CNBC's Steve Liesman reports on the
possible interest
rate hike after the
Fed met both goals with a strong jobs report and an inflation target of two percent.
European bourses closed higher on Wednesday after
Fed Chair Janet Yellen hinted at a
possible rate hike next month.
While the
Fed is widely expected to keep the benchmark interest
rate on hold, it looks certain to raise it again next month, given signs of
possible acceleration in the U.S. economy.
With respect to interest
rates, we continue to see a bifurcation for U.S.
rates where shorter - dated yields move higher in response to possibly two or three more
Fed rate hikes, while the U.S. Treasury 10 - year yield trades in a 2.25 percent to 2.75 percent range, with a temporary move toward 2 percent
possible if geopolitical risks become realities.
New York
Fed President William Dudley said last week a
rate hike would be
possible at the
Fed's next policy meeting in September.
Companies, then, are using these final days of a near - zero
fed funds
rate to lock in lots of debt, and for the longest payment period
possible.
The high - grade bond market is springing back to life as corporations race to issue new debt and get out in front of a
possible Fed interest
rate hike.
However, not everything has played to script, like some of the twists in Greece's debt crisis and the
possible delay of a
Fed rate hike.
Fed officials shook up the markets in late August when Yellen and two of her inner circle — Vice Chair Stanley Fischer and New York
Fed President William Dudley — said a
rate hike is
possible in September.
Recently the
FED raising interest
rate has swayed us in favor of getting rid of the mortgage as soon as
possible.
The phony low interest
rates promulgated by the money printing
FED is what makes leveraged buy outs
possible.
Therefore the ECB can be considered more likely to hike relative to the
Fed, leading to some
possible interest
rate differential induced strength in the Euro against the Greenback.
The
Fed expects to raise
rates three times this year, although some investors think a fourth increase is
possible.
The dollar rose to the highs of the year against a currency basket on Tuesday as investors awaited a
FED meeting expected to point to another
possible rate hikes this year.
Second, there are other
possible mechanisms for raising short - term interest
rates like the tri-party, reverse repo facility at the New York
Fed.
The
Fed are likely to hold steady on interest
rates but signal a
rate hike is
possible for June, as wages and prices are now growing at 2 percent a year, according to the
Fed's preferred inflation measure.
The Federal Reserve's (
Fed) widely anticipated decision this week to raise interest
rates for the first time in nearly a decade has garnered plenty of attention, especially from those concerned over the
possible negative economic impact of
rate increases.
Possible catalysts include continued
Fed rate hikes, the flattening of the yield curve, the potential resurfacing of inflation, a pickup in equity volatility, and geopolitical events.
The rush of
FED governors and District presidents to any microphone to undermine the chairman's views caused the market to pause and reconsider its stance on
possible FED normalizing
rates quicker than the «extended period» language presumed.
Upward pressure on longer - term
rates (such as 30 - year fixed mortgage
rates) is
possible if Yellen's remarks hint that the
Fed is considering more frequent
rate hikes in the years ahead, Fratantoni adds.
The likely reason that historic rally ended was the radical move by then
FED Boss Paul Volcker to pump interest
rates into the double digits, but today, that kind of move probably isn't
possible.
Concerns that a
possible rise in inflation in the United States could lead the
Fed to increase the pace of interest
rate hikes has caused nerves on Wall Street, and American investment products that bet against volatility seem to have contributed to Monday's stock rout.
Most are expecting more dovish talk, even with several key
Fed members stating that a
rate hike this year is very
possible.
When the
Fed decides to change course by nudging the fed funds rate higher, it is possible that interest rates in general will rise, and / or that the yield curve may flatten o
Fed decides to change course by nudging the
fed funds rate higher, it is possible that interest rates in general will rise, and / or that the yield curve may flatten o
fed funds
rate higher, it is
possible that interest
rates in general will rise, and / or that the yield curve may flatten out.
It is entirely
possible that both the DCBH scenario and small seeds
feeding at super-Eddington
rates both occurred in the early universe.
This includes high
rates of food selectivity observed in children with ASD, frequent use of caregiver - initiated complementary / alternative diet therapies, and growing concern regarding
possible nutritional deficits and excesses often observed in this population,» said co-author Rashelle Berry, lead dietician at Pediatric
Feeding Disorders program at Marcus Autism Center.
This includes high
rates of food selectivity observed in children with ASD, frequent use of caregiver - initiated complementary / alternative diet therapies, and growing concern regarding
possible nutritional deficits and excesses often observed in this population,» says co-author Rashelle Berry, lead dietician at Pediatric
Feeding Disorders program at Marcus Autism Center.
«Allowing mom and baby to bond as quickly as
possible after the delivery makes for a better transition for the baby, including better temperature and heart
rate regulation, increased attachment and parental bonding and more successful
rates of breast
feeding,» she said.
Take home message: Whenever
possible, eat fiber - rich whole foods because they provide fuel for your microbiome, bulk your stool,
feed your immune system, and slow the
rate of glucose absorption into your blood.
Since then, the OAS spread has tightened by 180 bps, giving bankers a window of opportunity to work with issuers in providing more debt to the market before any
possible additional
rate increase by
Fed.
In mid-March, pessimism over the US economy and monetary policy were so thick that people were considering the old Greenspanian
rate of 1 %
Fed funds as
possible.
A
possible example: «We promise not to raise the
Fed funds
rate until 2017.»
I see a 3 %
Fed funds target
rate at some point in 2008, barring a US Dollar crisis (
possible), or inflation (however well - massaged) convincingly exceeding 3 %.
I obviously want to get out of the
fed loan and lock into a lower fixed
rate for the long term and for the short term, get my payments as low as
possible for the next 1.5 years.
Although it's still entirely
possible to have a bear market despite a decent economy, I don't believe the current correction marks the end of the bull market, especially considering solid growth and a lower likelihood for a September Federal Reserve (
Fed) hike in interest
rates.
For those who wonder why there is so much interest in the
Fed and a
possible turn in interest
rates, the last chart of the 10 year Treasury note yield is a capsule history of the bond market since the 1960s.
While it's
possible in 2014 the
Fed will stop their $ 85 billion - a-month bond purchasing program, they still will be keeping the Federal funds
rate at 0 to 0.25 %.
If the
Fed does indeed follow through, maybe at the June round of meetings, it's quite
possible that mortgage
rates will rise by another 3 / 8th of one percent.
Recently the
FED raising interest
rate has swayed us in favor of getting rid of the mortgage as soon as
possible.
In the midst of this the FOMC began raising the
fed funds
rate higher and higher as they feared economic growth would lead to inflation, with rising long
rates a
possible sign of higher expected inflation.
Last week's end of May sell - off in anticipation of
possible interest
rate changes by the
Fed has made for some interesting investment opportunities.
Nonetheless, the
Fed is likely to change the way it conducts monetary policy in the future, avoiding as much as
possible episodes of sharp & prolonged discrepancies between market
rates and the
Fed funds
rate (remember the
Fed funds
rate at 1 % for... months!).
The REIT market generally overreacts initially to news that affects the timing and
possible aggressiveness of
Fed tightening, as well as to increases in long - term interest
rates, but tends to recover over time.
Such fees are «another
possible reason for low
rates of refinancing,» the
Fed wrote, adding that the charges are «difficult to justify.»