Federal Reserve Raises Rates 50 Basis Points First Time Since 2000 as Expected

The Federal Reserve raised rates by a half of a percent at their May meeting. This was the first time the bank raised rates this much since May 2000 when the Fed was led by Alan Greenspan. The Central Bank raised interest rates by 0.50% (to a target of 6.5%) back then. That was the last time the Fed would ever raise interest rates by that much in one move until day. The rate hike was priced in. The Balance … Continue reading “Federal Reserve Raises Rates 50 Basis Points First Time Since 2000 as Expected”

Federal Reserve Raises Rates for First Time Since 2018 as Expected by 25 Basis Points

The Federal Reserve raised rates by a quarter of a percent at their March meeting, The QE Taper pace as scheduled ended in March. The rate hike was priced in; however, the surprise is seven 7 hikes in the dot plot. The market has priced that in, but expectations are that generally the Fed lags the market. Last meeting the dot plot showed four hikes in 2022 Federal Reserve FOMC Statement  Federal Reserve Announcement Wednesday 16 March 2022 14:00:00 ET The … Continue reading “Federal Reserve Raises Rates for First Time Since 2018 as Expected by 25 Basis Points”

Federal Reserve Leaves Rates Unchanged, Taper Pace Unchanged in Measured Response as Expected

The Federal Reserve kept rates unchanged at their January meeting, The QE Taper pace left unchanged, scheduled to end in March as expected. Fed says it expects that it will soon be appropriate to raise the target range. Risks to the economic outlook remain, including from new variants of the virus. Dot plot shows four hikes in 2022 vs four hikes expected Federal Reserve FOMC Statement  Federal Reserve Announcement, Wednesday 26 January 2021 14:00:00 ET FOMC Benchmark Interest Rate Target Range … Continue reading “Federal Reserve Leaves Rates Unchanged, Taper Pace Unchanged in Measured Response as Expected”

Federal Reserve Leaves Rates Unchanged, Doubles Taper To $30 Billion per Month as Expected

The Federal Reserve kept rates unchanged at their December meeting, The QE Taper doubled in pace of Treasuries $20B per month as expected, and MBS $10B per month as expected. Dot plot shows three hikes in 2022 vs two hikes expected Federal Reserve FOMC Statement  Federal Reserve Announcement, Wednesday 15 December 2021 14:00:00 ET FOMC Benchmark Interest Rate Target Range UNCH .00-0.25% Interest Rate On Excess Reserves IOER hiked to 15 bps Conference To Follow At 2.30 ET PM With Chairman … Continue reading “Federal Reserve Leaves Rates Unchanged, Doubles Taper To $30 Billion per Month as Expected”

Fed’s Powell Rattles Markets With Retire Transitory Inflation and Speed Up Taper Comments

Federal Reserve System Chairman Jerome Powell took a decidedly hawkish tone today which sent US stock markets lower. Fed Chair Powell said it’s a good time to retire the word “transitory” and suggests its appropriate to taper more quickly. He was answering questions in today’s testimony at the joint Senate hearing with Treasury Secretary Janet Yellen before Senate Banking on Coronavirus and the CARES Act. The Fed Chair moved his bias toward the hawkish side which surprised many with the new … Continue reading “Fed’s Powell Rattles Markets With Retire Transitory Inflation and Speed Up Taper Comments”

Fed Chair Powell says Factors Pushing Inflation Upward Will Linger Into Next Year

Federal Reserve System Chairman Jerome Powel released his prepared testimony ahead of tomorrow’s 10:00 a.m. Senate hearing with Treasury Secretary Janet Yellen before Senate Banking on Coronavirus and the CARES Act. Headlines via Reuters Factors pushing inflation upward will linger well into next year  Inflation running well above 2% goal, pushed up by pandemic-related supply and demand imbalances Continue to expect inflation will move down significantly over the next year We will use our tools to support economy and strong … Continue reading “Fed Chair Powell says Factors Pushing Inflation Upward Will Linger Into Next Year”

Jerome Powell Re-nominated Fed Chair With Lael Brainard Vice-Chair

In what the Press had us believe was a close race The White House took the sensible route and nominated Jerome Powell for a second four-year term, according to a statement. PredictIt had Powell at a 79% favorite. Lael Brainard will be nominated as vice-chair replacing Richard Clarida. She was expected to get vice-chair of supervision if not chair. The White House said both Powell and Brainard share the administration’s focus on ensuring that economic growth broadly benefits all workers … Continue reading “Jerome Powell Re-nominated Fed Chair With Lael Brainard Vice-Chair”

Federal Reserve Leaves Rates Unchanged, Begins Taper at $15Billion per Month as Expected

The Federal Reserve kept rates unchanged at their November meeting, Cut in pace of Treasuries $10B/month as expected, Cut in pace of MBS $5B/month as expected. Inflation is elevated, largely reflecting factors that are expected to be transitory

Federal Reserve Leaves Rates and QE Unchanged Says If Progress Continues as Expected, a Taper May Soon Be Warranted

The Federal Reserve kept rates unchanged at their September meeting, kept QE infinity open with TALF for open-ended Treasuries, MBS and corporate bonds in amounts needed. Inflation has risen, largely reflecting transitory factors. Inflation is elevated, largely reflecting transitory factors

US Stockmarkets Hit Record Highs Ahead of Jackson Hole

The S&P, Dow and Nasdaq indices all hit record highs on Monday, continuing the sharp reversal off one month lows ahead of Jerome Powell’s speech at Jackson Hole, Wyoming set for Friday, though Fed officials will meet virtually for their annual symposium.