Sentences with phrase «rates because of the inflation»

Bullard sounded as if he would not be in favor of the Fed raising rates because of the inflation rate turning away from the spurious 2 percent mandate.

You are immune to yearly change of the premium rate because of inflation, as you have opted for a long - term policy.

Not exact matches

«That's because they've been trying to boost the inflation rate closer to their 2.0 % target ever since they publicly announced it at the start of 2012.»

That meant they not only lost out on the market gains that followed the recession, but they also continue to lose earning power because of inflation and low interest rates.

Their unemployment rates go up even when the inflation - adjusted value of minimum wage declines, because macroeconomics swamps all.

From that date, funding would be capped at the rate of medical inflation, a pace slower than the rise in total health care costs because it considers only prices, not how many visits or procedures folks are consuming.

This theory is why the Fed is thinking about raising rates even as inflation has consistently fallen below its 2 % annual target, because the central bank believes it needs to get ahead of rising inflation that a falling unemployment rate will cause.

Most of the CEOs think Canada's inflation rate will be lower because domestic spending, along with our money supply, are not keeping pace with the rate of U.S. increases.

So it would be unfair to call Poloz a currency manipulator: he has dropped Canada's benchmark interest rate to within a quarter point of its record low because otherwise inflation would drop below 1 %, the low end of the Bank of Canada's comfort zone.

But it should be paying a brand - name product rate of at least 23.1 percent, as well as an extra rebate because it has hiked the price of the device faster than the rate of inflation, according to the letter from acting Centers for Medicare and Medicaid Services Administrator Andy Slavitt to the Senate Finance Committee ranking member Wyden.

There are some signs that inflation could come out of hiding in the next 18 months, but I would be very surprised if we saw a substantial increase in long rates in the coming couple of years just because there are too many disinflationary macro headwinds.

In short, the Fed is paying attractive rates on the banks» reserves because it is afraid of over-stimulating the economy and creating inflation.

Because inflation is factored into the projected rate of investment return for a fund, any reduction in the assumed inflation rate can lead to the the fund reducing its projected rate for its investments.

Given these positive surprises, and because monetary policy must be forward - looking to achieve our inflation target, Governing Council's discussions focused on three main issues: first, the extent to which recent strength is signalling stronger economic momentum in Canada and globally; second, how heightened levels of uncertainty, particularly about US tax and trade policies, should be incorporated in our outlook; and third, how much excess capacity the economy currently has, and the growth rate of potential output going forward.

However, Meyer acknowledged signs of a slow recovery in the housing market, which should add 0.2 % to GDP this year, while her colleague Priya Misra, head of U.S. rates strategy, said inflation is not a concern because the U.S. Treasury market is on a continued flattening trend.

Because nominal wage growth for a large fraction of workers has been held to zero, a somewhat higher rate of inflation would grease the wheels of the labor market by allowing real wages to fall (Akerlof, Dickens, and Perry 1996).

Core inflation is close to 2 per cent because the effect of persistent economic slack is still being offset by that of past exchange rate depreciation, although the latter effect is dissipating.

The thrust of the article was that current P / E ratios are justified because of low interest rates and inflation.

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

On the other side of the debate, Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis, argued in a speech on Thursday night that the Fed should not raise rates this year because price inflation remains too low.

In other words, interest rates are not rising because of inflation fears, but because rates are starting to normalize from the unsustainably low levels reached earlier this year.

In addition, a rise in long - term interest rates seems inevitable sooner or later, either because of inflation or because the Federal Reserve backs away from its easy - money policies.

[Central banks] are supportive of these new technologies because they'll improve the payment system... but it won't affect the ability of the Fed to require a certain amount of reserves,» remarked Bernanke about a central bank's ability to curb inflation by altering interest rates.

So if I say that Zimbabwe has tight money and a quadrillion percent inflation, merely because interest rates are high, that's also a matter of opinion?»

The primary justification for their proposal is that an inflation - rate target is costly because it does not permit long - run predictability of the price level, which has first - order welfare effects in their models.

The purchasing power of the fixed income stream deteriorates, the investor has less ability to recoup purchasing power because of the shorter investment horizon and more conservative allocation, and the investor's potentially higher effective inflation rate (due to greater exposure to health care costs) tends to make any shortfall more painful.

Because inflation increases the costs of goods and services, it's possible that your purchasing power will suffer in retirement — even if the inflation rate is low.

b. Low short term interest rates c. No second round inflation because of the output gap and high unemployement (in US) d. GDP plateauing e.

That's dampening what little inflation exists in the economy, which is troubling for the Bank of Canada because it's mandated to keep prices advancing at a rate of about 2 per cent a year.

In contrast, core inflation, which strips out the most volatile inflation components, is facing upward pressure because recent declines in the exchange rate are boosting the prices of imported goods.

«He doesn't want to leave any question about the independence of the Governor of the Bank of Canada, but we have a situation under the Conservative government that has allowed record household debt... and the bank is really caught between a rock and a hard place, because these high debt levels create pressure for higher interest rates, but inflation is very low.

«Importantly, as long as rates are rising because the economy is strengthening and inflation is contained, it is reasonable to expect that the reversal of QE will not be painful.»

This is because interest rate changes have their largest effect on inflation risk, while stronger macroprudential settings will lead to a higher quality of household indebtedness over time.

It also offers stability and peace of mind because your monthly payment won't change no matter what happens to inflation or market interest rates.

Having higher nominal interest rates because of higher inflation would not help savers, because higher inflation would just erode the future purchasing power of those savings.

Because inflation will probably erode the value of the dollar — and pump up your paycheck — a fixed - rate loan should get easier to repay over time.

Second, rates rose because of the improved economy, not because of inflation which is around record lows.

If you currently have a student loan with a very low fixed interest rate, it makes more economic sense to pay only the minimum payments because of the low fixes rate and because of inflation.

High inflation, and associated high interest rates bias investment decisions against long - lived projects because of the high discount rates applied to future returns.

It's amazing to me how quickly opinions have shifted from the 2009 - 2013 thinking of «interest rates and inflation are going to scream higher because of the Fed» to the 2014 - 2015 mindset of «we think interest rates and inflation will be subdued for the next decade or so.»

A low rate of return is significant not just because it means less growth, but because it means more vulnerability to inflation.

By this, I mean, if inflation kicks in, interest rates should rise, and homes will effectively be worth less because of the decreased purchasing power.

If you can discount those cash flows at lower rate - because of slower inflation - then the value of those cash flows is higher.

The recently published minute of the Fed's meeting last month showed some members of the policy committee have argued for raising interest rates more quickly in coming months because of strong economic growth, a robust job market and rising inflation, which last month exceeded the Fed's target of 2 percent.

... the three - year rally in bonds could be officially O - V - E-R because of higher inflation rates.

Published cost data were converted into 2011 dollars using the rate of medical inflation for direct costs and general inflation for indirect costs, 33 because medical inflation outpaces general inflation.

Because of inflation rates, it might seem like we're making bank compared to past generations of moms.

And of course because of rising exchange rates, inflation which had reached as low as 7.8 % is today at 18.6 % all of which combine to erode the purchasing power of the average Nigerian... who still has a job and an income!

The state's cap is 2 percent or the inflation rate, whichever is lower, but limits vary by district because of differences in exempted expenses such as school renovations funded by bonds and approved by district voters.

I am a candidate because the property tax controlled directly by the Town Board increased by an average of 6 % per year over the last decade — nearly triple the rate of inflation.