Tag Archives: interest rates
The Fed Keeps Interest Rates on Hold
At the conclusion of its two-day meeting on July 26, the FOMC kept the Fed Funds target rate unchanged. While this was expected by the financial markets, I thought that the FOMC might still actually raise the target rate. At … Continue reading
The Market’s Mistaken View on Fed Rate Hikes
The consensus view of the financial markets suggests that the FOMC will next raise its target Fed Funds rate in December (by a quarter point). Currently, the target range is 1.00%-1.25%. Fed Funds futures currently suggest (as of July 13) … Continue reading
Market Update: A Temporary Head Fake?
Since my last update (Feb. 26), the stock market has had its ups and downs, reflecting the push and pull of stronger economic data against higher interest rates and the ongoing political wrangling in Washington.
Is the Federal Reserve Adding to Market Confusion?
The Federal Reserve Open Market Committee has taken the relative small (and symbolically huge) step of raising the target Fed Funds rate by one-quarter point. But its decision-making process and communications to financial markets both before and after the move … Continue reading
The Fed Tries to Thread the Needle
Last week, the Federal Open Market Committee decided to leave the target Fed Funds rate unchanged at 0%-0.25%. This was consistent with the views expressed in the pricing of Fed Funds futures, but it was still a disappointment to those … Continue reading