Tag Archives: hikes

NY Fed’s Williams Says Strong Economy Warrants Further Rate Hikes (As Dow Crashes 800 Points And 10Y-2Y Slope Flattens To 10 BPS) – Confounded Interest

confoundedinterest17 Banking, ECB, Economy, Fed, Powell, SPX, Stocks, Trade, Treasury, Uncategorized, Volatility, Yellen, Yield Curve December 4, 2018December 4, 2018 0 Minutes The Dow crashed 800 points today, most after noon. Which is it? The fear that the Trump-Xie tariff truce is a big nothing burger? Or that NY Fed President came out after noon saying that inflation and jobs ...

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Morgan Stanley likes US bank shares even with rate hikes

The U.S. Federal Reserve is widely expected to temporarily stop raising interest rates in the middle of 2019 — but Morgan Stanley predicts that stocks in the financial sector will still do well. A rising interest rates environment is typically beneficial for banks because it boosts profitability on loans. But bank stocks in the U.S. have done poorly this year ...

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Would back more rate hikes than expected if inflation surprised to upside

The Federal Reserve’s Vice Chairman Richard Clarida has recently crossed the wires arguing that gradual rate hikes were appropriate “as data shows the way to neutral policy stance.” Key quotes (via Reuters) Policy rate currently ‘just below’ Fed’s longer-run neutral estimates. Proximity to neutral policy ‘a matter of judgment’; FOMC has ‘range of views’. Uncertainty around neutral policy, maximum unemployment highlights ...

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