Sentences with phrase «when inflation rates»

When inflation rates exceed two percent by too much, it can be damaging to the U.S. economy.

When inflation rates exceed two percent by too much, it can be damaging to the U.S. economy.

The return trip — when the inflation rate trends toward low inflation — drives the value of the market higher.

When the inflation rate is less than the rate of dividend you are receiving, then you are investing in a good business.

Of course, the problem occurs when the inflation rate is outperforming our investment returns.

When the inflation rate is below target, the bank is inclined to keep interest rates at a low level, or lower them to help achieve it.

PART is an inflationary token, therefore its supply increases by 5 percent in the first year and decreases by one percentage point until the fourth year, when the inflation rate reaches 2 percent.

Not exact matches

This point — and again this goes back to Evans this morning — can best be grasped by thinking about the»70s inflation, when rates were high.

But when interest rates and inflation are at very low levels like now, this benefit is rather small.

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

But when the Bank of Canada started managing inflation in the early 1990s, rates fell, ultimately leading to a surge in home ownership.

Inflation, which the Federal Reserve keeps a close eye on when determining whether to raise rates, will be the main factor, Pinto said.

«In such a situation, U.S. interest rates might rise at a time when maintaining our inflation target would require that Canadian interest rates remain unchanged.

Nevertheless, when making interest rate policy in early March, BoC governor Mark Carney overlooked rising pressures on inflation and left the central bank's target for Canada's overnight rate at 1 %.

Since then, a sputtering economy and lackluster inflation have changed Wall Street's perception of when the central bank's Federal Open Market Committee will enact its first hike since taking its funds rate to zero in late 2008.

Normally, we would expect to see a reduction in the rate of inflation when the Canadian dollar is above the PPP level.

The Bank of Canada scrutinizes inflation data when it considers interest - rate decisions.

Fed policymakers» confidence in their outlook will be on show on Wednesday when they release their latest set of quarterly projections on growth, unemployment and inflation as well as their expected rate hike path.

Crudely put, the theory states that when inflation rises above a prescribed level (typically around 2 %), central banks must respond by raising interest rates, which quells consumer demand and causes inflation to fall back to «acceptable» levels.

When near - zero interest rates were introduced, Wall Street's wizards feared a snap back with inflation roaring in sharply and suddenly to our surprise and horror.

When the economy is close to full capacity, the bank hikes its rate to keep inflation from rising above its two per cent ideal target.

If Poloz was correct, and the media only care about prices when they spike to absurd levels, then let me suggest that some us are about to make up for it by working overtime to explain why the Bank of Canada wants to raise interest rates even though core inflation is trending away from the two - per - cent target.

When central banks around the world introduced stimulus packages, known as quantitative easing (QE) in a bid to stimulate spending, investment and growth, a key focus was the rate of inflation.

Wall Street has grown worried about a possible spike in US inflation following the passage of tax cuts at a time when the unemployment rate is already at a 17 - year low.

The Fed statement said: «The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.»

When I think about debt I do not care about interest rates, the type of loan, inflation or compounding.

You're still dealing with all of the same bond risks as every other investor when you buy individual bonds — interest rate risk, credit risk, inflation risk, duration risk, default risk, etc..

When looking at CD or savings interest rates, you also need to factor in inflation to understand how much money your deposit will really earn.

For example, they could seek to buy resilient bonds that pay decent coupons with limited price downside while simultaneously shorting fixed - income securities that look vulnerable when interest rates and inflation expectations trend higher.

Its inflation rate, at 3.8 %, is unchanged from mid-2010 when the commodity rally started.

Fed interest rate policy aims to keep inflation at reasonable levels and uses the PPI as a guide when setting interest rate policy.

Bond investors are in constant fear of a replay of the 1970s when interest rates exploded higher in concert with sky high inflation, a double whammy of bad news for fixed income securities.

Historically, the Federal Open Market Committee has looked to the Phillips curve — the inverse relationship between unemployment and the rate of inflation — for insight into when to dampen growth, but this seems less relevant today.

The U.S. economy and others are «too highly leveraged» to tolerate a federal funds rate above 2 % when inflation is near 2 %, he says.

Treasury Inflation - Protected Securities (TIPS) are subject to interest rate risk, especially when real interest rates rise.

Now I read, again, how inflation is induced by high oil prices and I have to wonder, what happens as oil becomes rare, what will the Fed do when hiking rates does not improve the purchasing power of the dollar?

When inflation increases, the «inflation part» of interest rates has to increase.

Numerous times in the past I've shown that the yellow metal has tended to rise when real rates — what you get when you subtract inflation from the federal funds rate — fell into negative territory.

When inflation is thought to be on the rise, the Fed begins to raise rates to slow the economy.

Although inflation may provide a boost to stocks by increasing company revenues, it can also impair valuations when higher rates are used to discount earnings.

The forecast I presented at the time was that when it had passed through, the rate of inflation measured by the CPI would settle at 2 1/2 per cent.

When a country's economic outlook improves, its investment opportunities look more attractive and its central bank raises interest rates to starve off inflation.

When the Fed has raised rates to stop inflation as in 1982, it has wanted to slow the economy way down.

I'm referring to statements such as the conditional commitment we made in 2009 — when we pledged to keep the key policy rate unchanged for a year as long as the outlook for inflation didn't change.

It is difficult to understand why the record burden of consumer debt will be impervious to a rising unemployment rate, particularly when companies are facing a substantial acceleration in wage inflation in recent months as they try to shore up profit margins - making substantial new layoffs inevitable.

The first was from 1980 to» 82, when Federal Reserve chairman Paul Volcker raised interest rates to crush double - digit inflation and the U.S. economy experienced two closely spaced recessions.

This is especially true when we move from low rates in a low inflation environment to higher rates.

Don't mistake my views for complacency: rising rates from higher levels when inflation is greater is a huge problem for stocks.

We make the case that stock valuations are reasonable when considering interest rates and inflation.

Ahead of that this morning we have CPI inflation data, fears of low inflation coupled with a contagion from slow growing and even contracting foreign economies is exactly why we believe the FOMC will not remove the «considerable time» phrase in its statement when referring to raising rates.