The Fed Keeps Rates Steady and Warns Against a March Cut
The Federal Reserve kept interest rates unchanged for a fourth consecutive meeting. The decision to leave the target range for the federal funds rate unchanged...
Tag: monetary policy
The ECB needs to set a course
Last week, several ECB members were responsible for pushing back expectations regarding the speed at which borrowing costs would decrease. The message got through, and...
U.S. Inflation Dampens Arguments for a Fed Rate Cut
U.S. inflation accelerated in December to 3.4%, the sharpest rise in three months. Americans paid more for housing and driving, casting doubt on investors’ bets...
The ECB Under Market Pressure
Inflation in the eurozone accelerated in December, highlighting the challenge of reaching the 2% target set by the European Central Bank as governments withdraw support...
The Fed still anticipates that interest rates will remain high for some time
Policymakers agreed last month that it would be appropriate to maintain a restrictive stance “for some time” while acknowledging that they were likely at the...
Short-term maturities will benefit from the Fed’s easing in 2024
Money market fund holders have a new reason to turn to short-term bonds. The best way to play the Federal Reserve’s pivot towards monetary easing...
Is the Fed right to lean towards investor optimism?
The Federal Reserve now believes it can have the best of both worlds: contain excessive inflation without pushing the economy into a recession. Powell surprised...
Who is right: the market or the FED?
Long-term Treasury bond options show that the outstanding open positions predicting a bond rally and lower interest rates are 2.5 times larger than those protecting...
The U.S. inflation and the market euphoria
The core Consumer Price Index, which excludes the costs of food and energy, increased by 0.2% compared to September. The overall indicator remained stagnant, held...