Rising interest rates are generally a good thing for investment service companies, such as money managers and brokerage firms. That’s because the interest rates they pay on the cash they borrow genera...
Tag: Interest Rates
No Relief From High New Car And Truck Prices; Subprime Loans Hit Hardest
A dealership shopper looks at a window sticker. Getty Images There’s still no letup in sight for high new-vehicle prices, despite some factors that could dampen consumer demand — like higher interest ...
Paul Volcker didn’t wait for inflation to get back to 2% before pivoting
Paul Volcker is back in the limelight after Federal Reserve Chair Jerome Powell approvingly cited his interest rate-hiking flurry to tame inflation back in the 1970s. But what’s less talked about is t...
Why the ECB’s jumbo rate hike isn’t helping the beaten-down euro
The European Central Bank went big on Thursday, delivering a historically outsize 75 basis-point interest rate increase in its effort to get a grip on record inflation. Yet the euro, after a brief bou...
ECB Rate Hike Means Recession Looms, Oil Bull Running On Fumes
ECB raises its main overnight lending rate to 1.25% from 0.5% on Thursday. It has a long way to go … [+] if it wants to fight 8.9% inflation in Western Europe. (Photo by Hannelore Foerster/Getty...
Cathie Wood Sees Deflation, Lays Blame on Powell
For months famed investor Cathie Wood has said that the Federal Reserve should cease raising interest rates, that the economy is seeing deflation rather than inflation and that it’s in recession...
European Central Bank Follows The Fed, Raising Rates 75 Basis Points
FRANKFURT AM MAIN, GERMANY – President of the European Central Bank Christine Lagarde announced a … [+] 75bps rise in European interest rates to combat inflation (Photo by Ronald Wittek &#...
Fed Chair Powell vows to raise rates to fight inflation ‘until the job is done’
Federal Reserve Chairman Jerome Powell in an appearance Thursday emphasized the importance of getting inflation down now before the public gets too used to higher prices and comes to expect them as th...
Commerzbank CEO says lenders are prepared for failing loans risk
The chief executive of one of Germany’s biggest banks, Commerzbank, sought to reassure investors Thursday about the prospect of non-performing loans this winter, saying banks are far better plac...
Watch Fed Chair Jerome Powell speak live in Q&A at the Cato Institute
[The stream is slated to start at 9:10 a.m. ET. Please refresh the page if you do not see a player above at that time.] Federal Reserve Chairman Jerome Powell speaks Thursday morning in a question-and...
Michael ‘Big Short’ Burry: The Worst Is Yet to Come
No one can accuse the famed investor Michael Burry of inconsistency. The man immortalized by Michael Lewis’s book-turned-into-movie “The Big Short” has been bearish on stocks and other risk assets for...
Fed on Path for Another 0.75-Point Interest-Rate Lift After Powell’s Inflation Pledge
Updated Sept. 7, 2022 10:29 am ET Listen to article (2 minutes) The Federal Reserve appears to be on a path to raise interest rates by another 0.75 percentage point this month in the wake of Chairman ...
Fed Vice Chair Brainard vows ‘we are in this for as long as it takes’ to stop inflation
Federal Reserve Vice Chair Lael Brainard vowed Wednesday to press the fight against inflation that she said is hurting lower-income Americans the most. That will mean more interest rate increases and ...
Market bracing for another three-quarter point hike from the Fed this month
Federal Reserve Board Chairman Jerome Powell speaks during a news conference in Washington, DC, on July 27, 2022. Mandel Ngan | AFP | Getty Images Traders are now seeing a near-certainty that the Fede...
US Notes Are Moving Much Lower
Photo by Chris Hondros/Getty Images Getty Images The rise in rates has sent bond prices lower. Let us look at the 10-year note prospects from a cycles standpoint. Currently, the cycles that are most a...
When It Pays to Have a Mortgage in Retirement—and When It Doesn’t
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How to deal when you’re stressed out about credit card debt
london, uk Peter Muller | Image Source | Getty Images Few things cause more financial distress and anxiety than a large slug of high-interest rate credit card debt. Millions of Americans of all income...
‘Vulnerable time for the housing market’: Mortgage rates are now double what they were a year ago, and will weigh on house prices
The 30-year fixed-rate mortgage averaged 5.66% as of Sept. 1, according to data released Thursday by Freddie Mac. That’s up 11 basis points from the previous week — one basis point is equal to one hun...
Gasoline Prices Should Keep Falling Unless This Happens
Gasoline prices are expected to continue their downward trend during Labor Day weekend as consumers are still receiving a reprieve. Crude oil prices declined on Sept. 2 to $86.97 a barrel on ongoing f...
Bonds Are in a Bear Market. How to Play What Happens Next.
Text size A shift in Federal Reserve monetary policy has helped ratchet up bond yields, hitting prices. Anna Moneymaker/Getty Images Red-hot inflation and rising interest rates have hammered the globa...
After a Brutal Bond Selloff, Opportunities Have Emerged for Income Investors
For many years, dividend stocks were one of the few places where investors could find decent yields in a world of ultralow rates. A 10-year Treasury bond was dealing out an emaciated 1.3% a year ago, ...
Despite recession fears, most investors haven’t shifted 401(k) assets
Morsa Images | E+ | Getty Images Many investors worry a recession is coming amid rising interest rates, high inflation and stock market volatility. But the majority haven’t changed their portfol...
Fed’s Mester sees benchmark rate above 4% and no cuts at least through 2023
Loretta Mester at Jackson Hole, Wyoming David A. Grogan | CNBC Cleveland Federal Reserve President Loretta Mester said Wednesday she sees interest rates rising considerably higher before the central b...
The Dollar Will Get Even Stronger. Why That Could Slam the Global Economy.
Even for mighty Microsoft , $595 million is a lot of money. That’s how much the software giant’s sales were reduced in the most recent quarter by the ever-stronger U.S. dollar. Indeed, a broad range o...
Economist predicts a ‘whopper’ of recession in 2023 — and that’s not necessarily due to higher interest rates
Financial markets investors worry the U.S. is on the brink of an economic downturn as central bankers in Jackson Hole reaffirmed their determination to raise interest rates to bring inflation under co...
Fed’s Williams pushes back on expectations of a rate cut next year
John Williams, chief executive officer of the Federal Reserve Bank of New York, speaks at an event in New York, November 6, 2019. Carlo Allegri | Reuters New York Federal Reserve President John Willia...
Morgan Stanley warns this corner of the credit market could be first to implode as interest rates rise
Now that Federal Reserve Chairman Jerome Powell has made it abundantly clear that the Fed has no plans to slow the pace of interest-rate hikes, some bond-market experts are warning that the most specu...
Powell’s Inflation-Fighting Speech Sets Up Larger 75bps September Hike
A television station broadcasts Jerome Powell, chairman of the US Federal Reserve, speaking at the … [+] Jackson Hole Economic Policy Symposium on the floor of the New York Stock Exchange (NYSE)...
We’re going to have one whopper of a recession in 2023
The U.S. economy is going to fall into a recession next year, according to Steve Hanke, a professor of applied economics at Johns Hopkins University, and that’s not necessarily because of higher...
Preferred stocks can offer hidden opportunities for dividend investors. Just look at this JPMorgan Chase example.
This is shaping up to be a brutal year for bank stocks. But a deeper look can highlight an opportunity for income-seeking investors to make money on banks’ preferred stocks. But the S&P 500 SPX, +...