The Federal Reserve shouldn’t use its interest-rate policy to “fine-tune” financial stability risks, said former Fed Chairman Ben Bernanke on Monday. Speaking to reporters at the Brookings Institution...
Tag: Monetary Policy
Cracks in financial markets fuel debate on whether the next crisis is inevitable
To paraphrase a quote by legendary investor Warren Buffett: It’s only when the tide goes out that you discover who’s been swimming without a suit. In this case, the metaphorical tide represents the en...
A ‘Fed pivot’ still is the best shot for stocks to rebound
Timing the market has been a nagging question for investors ever since the stock market began its decline by roughly 25% in January this year. The right answer likely hinges on whether or not the Fede...
Fed may need to pivot by early November, when ‘something breaks’: Scott Minerd
With multiple cracks emerging in global financial markets, the Federal Reserve may be forced to end its aggressive rate hikes “when something breaks” and to pivot by the end of the World Series this f...
Global economy will ‘crumble’ if Fed doesn’t stop hiking interest rates, billionaire investor Sternlicht says
““They are going to cause unbelievable calamities if they keep up their action, and not just here, all over the globe,” ” — Barry Sternlicht, CEO, Starwood Capital Group Billionaire Barry Sternlicht,...
Fed’s Williams sees steep decline in inflation ahead
Cooling global demand and steady improvements in supply should result in falling rates of inflation for goods over the next year, New York Fed President John Williams said Monday. “These factors shoul...
Opinion: Stock markets will drop another 40% as a severe stagflationary debt crisis hits an overleveraged global economy
NEW YORK (Project Syndicate)—For a year now, I have argued that the increase in inflation would be persistent, that its causes include not only bad policies but also negative supply shocks, and that c...
Stocks will continue falling even after Fed pivots, warns Morgan Stanley strategist who predicted bear market
Morgan Stanley Chief Equity Strategist Mike Wilson on Monday has doubled down on his call for stocks to continue falling into the end of 2022 partly because of a shrinking supply of dollars in some of...
U.N. Calls On Fed, Other Central Banks to Halt Interest-Rate Increases
The Federal Reserve and other central banks risk pushing the global economy into recession followed by prolonged stagnation if they keep raising interest rates, a United Nations agency said Monday. Th...
Why Interest Rates Are Rising Everywhere—Except Your Savings Account
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What will happen with inflation, interest rates and housing? Here’s what to expect in the next two years, and what could go wrong.
This article is reprinted by permission from NerdWallet. The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor...
Bond Market Turmoil Could Last a While. How to Ride It Out.
It is an exciting time for fixed income—and a terrifying one, too. Central banks are in the midst of the most dramatic tightening of monetary policy in a generation, which has helped push yields on so...
‘We are in deep trouble’: Billionaire investor Druckenmiller believes Fed’s monetary tightening will push the economy into recession in 2023
Billionaire investor Stanley Druckenmiller sees a “hard landing” for the U.S. economy by the end of 2023 as the Federal Reserve’s aggressive monetary tightening will result in a recession. “I will be...
Opinion: Market instability replaces inflation as the biggest risk, raising the chances of a pivot by the Federal Reserve
Market instability is the biggest risk to central banks globally, replacing inflation, owing to massive amounts of leverage. So far, the U.S. Federal Reserve is fortunate because there’s low volatilit...
What’s The Problem? UK Economic Policy Mirrors Successful 1980s U.S. Effort
LONDON, ENGLAND – JULY 14: Secretary of State for Business, Energy and Industrial Strategy Kwasi … [+] Kwarteng (R) intridcues Conservative leadership candidate Liz Truss (L) as she launch...
The Stock Market Is Reeling. How It Could Stop Falling Next Week.
Text size The S&P 500 is down 23% from its January peak. Getty Images After one of the worst weeks for the stock market in 2022, two factors could swing the market over the next few days and set i...
Don’t look for a stock market bottom until a soaring dollar cools down. Here’s why.
It will be difficult for the stock market to stop its slide and find a bottom as long as the U.S. dollar keeps soaring versus its rivals, according to market analysts. Global stocks suffered a bruisin...
Wharton’s Jeremy Siegel accuses Fed of making one of the biggest policy mistakes in its 110-year history
““I think we’re giving Powell too much praise. … The last two years are one of the biggest policy mistakes in the 110-year history of the Fed by staying so easy when everything was booming.”” — Jeremy...
Goldman Sachs Just Lowered Its S&P 500 Price Target. How Low It Could Go.
Text size Traders working at the New York Stock Exchange (NYSE), today, Thursday, June 16, 2022. NYSE Goldman Sachs finally decided to stop fighting the Fed and lowered its year-end forecast for the S...
If you’re selling stocks because the Fed is hiking interest rates, you may be suffering from ‘inflation illusion’
Forget everything you think you know about the relationship between interest rates and the stock market. Take the notion that higher interest rates are bad for the stock market, which is almost univer...
Global Economy Headed Into Recession
Looking at the world economy getty The global economic outlook is deteriorating due to inflation-fighting efforts by central banks, the war between Russia and Ukraine, and China’s prioritization of po...
‘The housing market may have to go through a correction’: Mortgage rates hit 6.29%, Freddie Mac says
The numbers: U.S. mortgage rates continue to climb, adding hundreds of dollars in costs to potential homeowners. The increase in mortgage rates followed the Federal Reserve hiking interest rates again...
The Stock Market Is Getting Crushed Again. But the Pain Is Almost Over.
Text size The Fed is trying to stamp out inflation by reducing economic demand, which is hurting the stock market. Michael M. Santiago/Getty Images The stock market has once again gone into selloff mo...
CD rates are higher, but should you put your cash in them? Consider your goals.
This article is reprinted by permission from NerdWallet. The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor...
Yen rallies after Japan unilaterally intervenes for first time in 24 years
The dollar dropped sharply against the Japanese yen on Thursday, in the first intervention to support its currency since 1998, after the Bank of Japan bucked the trend of other central banks by not hi...
Weekend reads: How the Fed’s punishing policy can set you up for massive gains in the stock market
During a long bear market, investors’ moods can be so bleak and muddy that they cannot envision better times. But they always come. Warren Buffett has shown repeatedly over the decades how to enhance ...