Tag: Interest Rates

The Economy Faces Big Risks in 2019. Markets Are Only Now Facing Up to Them.

ImageTraders outside the New York Stock Exchange this week. Worries about the economy’s future are finally starting to affect stock prices, even though the economy remains strong.CreditMary Altaffer/Associated Press After another week of exceptional volatility on Wall Street that has pummeled stock portfolios, there are two closely related questions worth asking. First, why is this […]

Read More

Stocks Slide After Trump Tweets on Trade, While Bond Market Sounds Recession Warning

Stocks fell on Tuesday, after President Trump sowed confusion over the status of a truce in the trade war between the United States and China, while the bond market, often considered a safe haven for investors, sent a stark warning about expectations for an economic slowdown. The S&P 500 dropped more than 2 percent, with […]

Read More

Fed Minutes Signal December Interest Rate Increase

WASHINGTON — The Federal Reserve is poised to raise interest rates at its next policymaking session in mid-December, according to minutes of the central bank’s last meeting in early November published on Thursday. The account said “almost all” Fed officials also expected to continue raising the benchmark rate next year. President Trump has warned repeatedly […]

Read More

Bond Market Signals Weakening Case for Interest Rate Increases

Before stock investors decided that the Federal Reserve chairman was flagging the end of interest rate increases, the bond market was signaling the case for raising rates had weakened. A measure of investors’ expectation for inflation over the next five years has fallen in recent weeks. The difference between the yields on five-year Treasury inflation-protected […]

Read More

Speech by Fed Chief Jerome Powell Causes Markets to Jump

Stocks rose Wednesday afternoon after investors took comments by the Federal Reserve chairman to mean that the central bank could be closer than expected to ending its current push to lift interest rates. But investors, who have worried that rising interest rates could dampen economic growth, may be reading too much into the comments by […]

Read More

When Blue Chip Companies Pile on Debt, It’s Time to Worry

Corporations, like people, are pretty simple: They do what they are rewarded to do. So when the Federal Reserve, by keeping interest rates very low for nearly a decade, rewards companies for borrowing money by making it historically inexpensive to do so, it can’t be a surprise to anyone that that’s exactly what they did. […]

Read More

Markets Are Revealing the Sum of All Risks

ImageMarkets are reflecting gathering risks. A view of the New York Stock Exchange from Federal Hall National Memorial.CreditMary Altaffer/Associated Press The most telling thing about the pummeling that the stock market has taken recently, and especially this week, is that there’s no simple single cause to point to. That reflects the fundamental economic risk for […]

Read More

Midterm Elections Are Unlikely to Change Fed’s Trajectory

WASHINGTON — The Federal Reserve’s Open Market Committee, which sets monetary policy, will issue a policy statement at 2 p.m. on Thursday after a two-day meeting. ■ Investors expect the Fed to leave its benchmark interest rate unchanged, in a range of 2 percent to 2.25 percent. ■ The Fed’s upbeat economic outlook is also […]

Read More

G.D.P. Report Quarter 3: Here’s What to Watch For

The Commerce Department will release its initial estimate of third-quarter economic growth at 8:30 a.m. on Friday, providing the latest snapshot of the American economy. Here’s what to watch for. By most measures, the economy is doing well. The economy continued to steam ahead last quarter, with analysts on Wall Street expecting an annualized growth […]

Read More

Stocks Fall (Again) as China Concerns Become a Drag

Stocks resumed their October tumble on Thursday, led by a drop in technology stocks that tracked a sell-off in China overnight. Tech firms led the Wall Street sell-off, with the tech-heavy Nasdaq composite index and a closely watched index of semiconductor stocks slumping more than 2 percent. The Standard & Poor’s 500-stock index fell 1.4 […]

Read More

Fed Plans to Continue Raising Rates, Despite Trump’s Ire

WASHINGTON — The Federal Reserve’s official account of its latest policy meeting, published Wednesday, does not mention any discussion of President Trump’s demands that the Fed should stop raising interest rates. But it makes clear that Mr. Trump’s economic policies are very much on the Fed’s mind. The strength of economic growth, thanks in part […]

Read More

Is the Dollar Stronger Than Trump?

The United States dollar seems to be under threat from multiple quarters. Countries that have been hit by American sanctions, such as Iran and Russia, economic rivals like China, and even allies in the European Union want to shake off the dollar’s tight grip on global finance. For now, they are out of luck. The […]

Read More

Trump Attacks the Fed as Stocks Fall and the Midterms Loom

But the volume of public commentary greatly diminished in recent decades as politicians concluded that pressuring the Fed was counterproductive. The administrations of Presidents Bill Clinton, George W. Bush and Barack Obama all made a policy of silence on monetary policy. Krishna Guha, the head of the central bank strategy team at Evercore ISI, said […]

Read More

Interest Rates Are Rising. That’s Great News for Most.

The cost to borrow money is on the rise. That is bad news for home buyers and other prospective borrowers. It helped cause a stock market sell-off on Wednesday, and prompted President Trump to say that the Federal Reserve has “gone crazy.” But it amounts to good news for the long-term direction of the economy. […]

Read More

Market Rout in Asia Suggests Another Day of Investor Losses

HONG KONG — Global markets shuddered on Thursday after a drop in stocks in the United States over concern about rising interest rates and increased tensions between Beijing and Washington. Stocks were particularly hard hit in Asia, where no market was spared a sweeping sell-off and stocks in Shanghai, Tokyo, Seoul and Hong Kong dropped […]

Read More

Stocks Fall as Tech Investors Worry About Trade and Bond Yields Climb

Stocks suffered their steepest drop in six months Wednesday, as investors continued to digest rising interest rates and previously high-flying tech shares tumbled. The Standard & Poor’s 500-stock index dropped roughly 1.9 percent by midafternoon, bringing the broad equity benchmark down 3 percent for the month. The yield on the 10-year Treasury note, a key […]

Read More

Housing Market Slows, as Rising Prices Outpace Wages

DENVER — By nearly any measure, this city is booming. The unemployment rate is below 3 percent. There is so much construction that a local newspaper started a “crane watch” feature. Seemingly every week brings headlines about companies bringing high-paying jobs to the area. Yet, Denver’s once-soaring housing market has run into turbulence. Sales and […]

Read More

Fed Raises Rates for Third Time in 2018

WASHINGTON — The Federal Reserve, as expected, raised its benchmark interest rate by one quarter of a percentage point on Wednesday, and indicated it plans to raise rates again in December. The Fed repeatedly described economic conditions as “strong” in a statement following a two-day meeting of its Federal Open Market Committee, which sets monetary […]

Read More

What to Watch From the Fed: An Interest Rate Increase and the Path Forward

WASHINGTON — Wednesday is Fed Day, meaning the Federal Reserve’s Open Market Committee, which sets monetary policy, will issue a policy statement at 2 p.m., following a two-day meeting. ■ Investors expect the Fed to increase its benchmark interest rate to a range of 2 percent to 2.25 percent, its third increase in 2018. ■ […]

Read More