Mortgage rates are soaring, and no one is being spared. The average rate on a 30-year fixed-rate mortgage was 5% as of the week ending April 14, representing an increase of 28 basis points from the pr...
Tag: Monetary Policy
The Safe Investment That Will Soon Yield Almost 10%
There’s no such thing as a free lunch in finance. Except maybe this: The interest rate on inflation-adjusted U.S. savings bonds will approach 10% beginning in May. U.S. Treasury Series I Bonds, or I B...
Bitcoin Prices, Other Cryptos Fall—and Why One Trader Sees a Tumble to $30,000
Text size Bitcoin and the rest of the crypto space has come under pressure amid a shift in Fed policy. Rutmer Visser/Dreamstime Bitcoin and other cryptocurrencies slipped lower on Monday, continuing t...
The Fed’s plan to rapidly slash its balance sheet is out. Here’s what happens to money in the system.
Minutes of the Federal Reserve’s March meeting released on Wednesday detailed plans for shrinking its nearly $9 trillion balance sheet to help cool U.S. inflation running at 40-year highs, but tricky ...
Fed primed to jack up interest rates in 1/2-point steps if inflation stays high
The Federal Reserve signaled its plans to increase a key U.S. interest rate by 1/2 percentage point steps at upcoming meetings if inflation remains high or gets even worse, according to minutes of the...
Fed must ‘inflict more losses’ on stock-market investors to tame inflation, says former central banker
So much for the Fed put. “‘It’s hard to know how much the U.S. Federal Reserve will need to do to get inflation under control. But one thing is certain: To be effective, it’ll have to inflict more los...
China Covid Lockdowns Likely To Be Followed By Policy Easing In 2nd Half — Matthew Asia’s Andy Rothman
Empty roads during a phased lockdown due to Covid-19 in Shanghai, China, on Tuesday, April 5, 2022. … [+] Shanghai reported more than 13,000 daily Covid cases for the first time, as a sweeping l...
Bear market rally setting stage for correction: Morgan Stanley warns
A major Wall Street firm is on correction watch. Despite the latest market bounce, Morgan Stanley’s Mike Wilson is bracing for an S&P 500 decline of at least 13% between now and September. W...
Fed’s Williams says could begin reducing balance sheet as soon as May meeting
The Federal Reserve may begin reducing its balance sheet as soon as its May 3-4 policy meeting to address the level of U.S. inflation that have become “particularly acute,” New York Fed chair John Wil...
Is a yield curve inversion a foreboding sign for mortgage rates? Does it really signal a recession? Economists weigh in.
For a moment this week, the bond market flashed a signal that some associate with impending recessions. Home buyers need not worry just yet, according to economists. On Friday, the 2-year rate, which ...
Inverted Yield Curve Could Be Sending a Bogus Recession Warning
No topic has dominated the investment conversation lately as much as the yield curve. While it’s an arcane matter to most folks, we in the financial sphere have been thrown into a tizzy by this indica...
As the Fed Raises Interest Rates, and Other Central Banks Don’t, What Will That Mean for U.S. Stocks?
The Federal Reserve’s recent decision to begin raising interest rates stands in contrast to many other central banks around the world, which are keeping their baseline interest rates flat or lowering ...
The Fed Has Begun Raising Interest Rates. Here’s When It Will Start to Cut.
Text size The Fed is battling inflation. Gasoline prices are a big part of the problem. Joe Raedle/Getty Images Financial markets deserve their reputation for focusing on the future. Investors are loo...
U.S. inflation jumps again and hits 6.4% rate, the Fed’s favorite price gauge shows
The numbers: The Federal Reserve’s favorite inflation calculator rose a sharp 0.6% in February and kept the increase over the past year at a 40-year high, explaining why the central bank plans to move...
‘The dam finally broke’: 10-year Treasury yields spike to breach top of downward trend channel seen since mid-1980s, says Deutsche Bank
Yields on the 10-year Treasury note have spiked through the top line of a downward trend channel tracing back to the mid-1980s, with surging inflation and the Federal Reserve’s reaction to it sparking...
M&T Bank Stock Looks Like a Buy
Text size Citigroup’s Keith Horowitz’s price target of $220 on M&T Bank shares suggests 20% upside from Friday’s close. Daniel Tepper/Bloomberg Like a child waiting for a birthday present only to ...
If the Fed Pulls This Off, It’s Party Time
Text size College students party at the beach during spring break on South Padre Island, Texas. Brandon Bell/Getty Images Party like it’s 1994? Rather than 1999, the year made famous by Prince’s purpl...
Why Housing May Not Get as Hammered as Usual in This Rate Hike Cycle
Traditional home buyers are sure to be pinched by rising mortgage rates, but better-financed investors could keep prices rising. Here, a home for sale in Houston last summer. Brandon Bell/Getty Images...
Mortgage Rates Rose Even Higher. Here’s How Much More You’d Pay Now.
New-home sales fell in February due, in part, to the effects of rising mortgage rates on affordability. Justin Sullivan/Getty Images Text size Mortgage rates climbed past 4% last week—and their rapid ...
Three value stocks that can provide safety as interest rates rise
Stocks have been on a rocky road this year, as investors have tried to anticipate every possible move by the Federal Reserve to combat inflation. Value strategies have held up better than growth strat...