The Federal Reserve on Wednesday enacted its second consecutive 0.75 percentage point interest rate increase as it seeks to tamp down runaway inflation without creating a recession. In taking the benc...
Tag: Interest Rates
The Fed will cut rates next year, says BofA. Here’s what will happen to Treasurys.
All eyes will be on the Federal Reserve on Wednesday. The central bank is widely expected to continue the fast pace of monetary tightening with another 75 basis-point hike in borrowing costs. But even...
How the Federal Reserve fights inflation through interest rate hikes
Top officials at the Federal Reserve were seeing inflation data come in very hot for months before policymakers moved to wind down monetary policies that were stimulating the economy. A chorus of anal...
After Fed Raises Interest Rates Wednesday, Investors to Look for Clues About What’s Next
After the Federal Reserve lifts its benchmark interest rate on Wednesday, attention will turn to what Chairman Jerome Powell says about a rate increase at the central bank’s meeting in September. The ...
Here’s what Bill Ackman says Powell should tell traders about Fed rate-hike plans
“‘Tomorrow, Powell is likely to be asked: “Market pricing implies that the terminal FF rate will peak at 3.4% in 12/22 immediately declining thereafter to 2.7% by YE ‘23. What factors would cause the ...
A Fed Rate-Hike Surprise Could Be a Problem for Stocks
Text size The Federal Reserve continues to play catch-up in its fight against inflation, and there’s no doubt that interest rates are headed higher after its meeting ends on Wednesday. Chip Somo...
Economist Roubini: ‘Severe’ Recession, Financial Crisis Coming
The economic outlook is murky now. It’s difficult to know when inflation will peak, when it will fall in earnest and thus how far the Federal Reserve will ultimately lift interest rates. It’s also unc...
1 in 5 Americans dodging credit card statements as interest spikes
domoyega | E+ | Getty Images As credit card debt swells and interest rates spike, many spenders are fearful about high balances. Nearly 1 in 5 Americans are afraid to check their credit card statement...
Expect Two Recessions, and a Quick End to the Fed’s Interest-Rate Hikes
Forward guidance sounds like a great idea. Central bankers should lay out their longer-term goals to influence financial markets. Just as hockey great Wayne Gretzky would skate where the puck was head...
The Fed’s next rate hike could be huge. One simple way to profit from it
Some pros are speculating that the Fed could raise interest rates 1% at their July 26 meeting. Getty Images/iStockphoto Experts predict that the Federal Reserve will raise rates at their July 26 meeti...
Expect Two Recessions, and a Quick End to the Fed’s Hikes
Forward guidance sounds like a great idea. Central bankers should lay out their longer-term goals to influence financial markets. Just as hockey great Wayne Gretzky would skate where the puck was head...
Fed can’t stop hiking interest rates even if there is a recession, former top central banker says
The Federal Reserve has to emulate Mario Draghi and do “whatever it takes” to bring inflation down and that means continuing to raise interest rates even if there is a recession, said former Richmond ...
Adjustable-rate mortgage vs. fixed-rate mortgage: Which one is better for you?
Hello and welcome to Financial Face-off, a MarketWatch column where we help you weigh financial decisions. Our columnist will give her verdict. Tell us whether you think she’s right in the comments. A...
For Climate’s Sake, Don’t Have The Fed Cause A Recession
With U.S. inflation at 9.1%, economic pundits are bracing for the U.S. Federal Reserve to pull a Paul Volcker. The Fed Chairman from 1979 to 1987, Volcker tamed inflation by driving short-term interes...
The Fed’s next interest rate hike ‘might be the biggest in decades.’ So we asked 6 real estate pros: What might that do to mortgage rates?
What might happen to mortgage rates soon? Getty Images/iStockphoto Word on the street is that the Federal Reserve may raise rates by 1% at their July 26 meeting — as they try to quell inflation that n...
Over Confident Markets Anticipate Steep Drop In Inflation
(Photo by Samuel Corum/Getty Images) Getty Images Inflation just printed at 9.1%, the highest level since 1981. But don’t worry, sayeth the ever-wise financial markets, it will fall back down ve...
Fed’s Bullard Raises Target for Year-End Funds Rate
Federal Reserve Bank of St. Louis President James Bullard said Friday that unexpectedly high inflation calls for a more aggressive path of short-term interest rate rises this year. Inflation “has come...
75 or 100 basis points? Lost in market debate over Fed’s next rate hike is ‘how long inflation stays at these levels’
Debate has been simmering over whether Federal Reserve policy makers will raise the fed-funds rate by three-quarters of a percentage point later this month, as they did in June, or step up their infla...
How inflation can hurt and help consumers, according to economists
A person shops for groceries on March 10, 2022 in the Prospect Lefferts Garden neighborhood of Brooklyn. Michael M. Santiago | Getty Images News | Getty Images Inflation hit a new 40-year high in June...
Fed Governor Waller says he’s open to ‘larger’ rate hike this month than in June
Christopher Waller, U.S. President Donald Trump’s nominee for governor of the Federal Reserve, speaks during a Senate Banking Committee confirmation hearing in Washington, D.C., U.S, on Thursday...
Gain 11.3% on surge in energy costs
Inflation hit hard at the wholesale level in June, as producer prices surged a near-record amount from a year ago due to a big jump in energy costs, the Bureau of Labor Statistics reported Thursday. T...
Inflation rose 9.1% in June, even more than expected, as consumer pressures intensify
Shoppers paid sharply higher prices for a variety of goods in June as inflation kept its hold on a slowing U.S. economy, the Bureau of Labor Statistics reported Wednesday. The consumer price index, a ...
US recession looks likely, there are 3 ways the economy could get hit
Rising gas prices are piling pressure on the U.S. economy. Bloomberg | Getty Images The odds of the U.S. economy falling into recession by next year are greater than 50%, Richard Kelly, head of global...
Latest Inflation Surprise Sends Treasury Curve And U.S. Dollar To Record Levels
UNITED STATES – JULY 6: Gas prices are displayed on a sign at a gas station in Williams, Ariz., on … [+] Wednesday, July 6, 2022. (Bill Clark/CQ-Roll Call, Inc via Getty Images) CQ-Roll Ca...
Housing Market: Mountain of Woes Just Keeps Rising
The housing market is not a pretty thing right now. Soaring prices and mortgage rates have made homes unaffordable for many buyers, and sales are falling as a result. Here’s the latest piece of bad n...
This type of ETF is seeing near-record inflows and pays dividends
It’s a type of ETF seeing near-record inflows. New data shows dividend exchange-traded funds totaled almost $50 billion in fresh money in the first half of 2022, according to Todd Rosenbluth of ...
Stock Outlook Brightens as Jobs Stay Strong, Commodities Prices Decline
Text size The jobless rate held steady at 3.6% in June. Above, looking for work at a job fair in Florida. Joe Raedle/Getty Images The economy looks resilient, and inflation is coming down. That combin...