The U.S. economy is on a rip, with employers adding around 303,000 jobs in March 2024 – the largest increase in almost a year. As the world’s largest economy continues to surge, questions arise about the Federal Reserve’s next move regarding interest rates. Stronger-than-expected Job Growth The unemployment rate fellRead More →
Federal Reserve Chairman Jerome Powell stated on Wednesday 3rd April 2024 that policymakers will need time to assess the current inflation situation, leaving the schedule for potential interest rate reductions unclear. Referring to the stronger-than-anticipated price pressures at the year’s onset, Powell reportedly stated that he and his colleagues areRead More →
The Fed in March 2024, indicated for the markets to expect three interest rate cuts by the end of 2024 – but what if this didn’t happen? The Federal Reserve’s decision to maintain interest rates in 2024 could have significant implications for the U.S. economy. Fed cred – credibility wouldRead More →
Federal Reserve Chair Jerome Powell said in a U.S. TV interview on Sunday 4th January 2024 that the central bank will proceed carefully with interest rate cuts this year and likely will move at a considerably slower pace than the market expects. Election year rate cuts? In the interview andRead More →
The Federal Open Market Committee (FOMC) held interest rates steady and indicated a willingness stop raising interest rates. But a cut anytime soon is unlikely until inflation is brought fully under control and nearer to the Fed’s 2% inflation target. The Federal Reserve sent a signal that it is finishedRead More →
Federal Reserve officials in December concluded that interest rate cuts are likely in 2024, though they appeared to provide little in the way of when that might occur, according to minutes from the meeting released Wednesday 3rd January 2024. FOMC meeting minutes The rate-setting Federal Open Market Committee (FOMC) agreed to keepRead More →
The Dow Jones Industrial Average (DJIA) hit a new all-time high, on 13th December 2023. It closed at 36799 surpassing its previous record of 36585points that it had set on 4th January 2022. This was the fourth consecutive record close for the index. Record high The Dow’s record high was driven primarily by theRead More →
Fed holds U.S. rates at 5.5%, indicates three cuts coming in 2024 The Federal Reserve on Wednesday 13th December 2023 held its key interest rate steady for the third time in a row and set the scene for multiple rate cuts in 2024 and 2025. With inflation easing and theRead More →
Fed Chair Jerome Powell reportedly said he and his colleagues remain steadfast in getting policy in line with their 2% inflation target, but ‘we are not confident that we have achieved such a stance’. He stressed the Fed nevertheless can be cautious as the risks between doing too much andRead More →
Central banks, 18 months ago got it fundamentally wrong and they got it wrong on many other occasions too. So why take any notice? The Fed and other central banks insisted that inflation would be ‘transitory’ – it wasn’t. It reached 7%. That’s 5% above the target of 2%. Along withRead More →
The U.S. Treasury yields are the interest rates that the U.S. government pays to borrow money for different periods of time. The 10-year Treasury yield is one of the most important indicators of the state of the economy and the expectations of inflation and growth. On 23rd October 2023, the 10-yearRead More →
The latest U.S. jobs report for September 2023 was released on Friday, October 6, 2023. The U.S. economy added 336,000 jobs last month, much more than expected, despite the Federal Reserve’s struggle to cool the world’s largest economy. The unemployment rate was 3.8%, in line with August 2023. The data lifted hopes thatRead More →
Highest yields since 2007 The U.S. Treasury yields are the interest rates that the U.S. government pays to borrow money. The 10-year and 30-year Treasury yields are the most widely followed indicators of the long-term health of the U.S. economy and the expectations of inflation and growth. 10 year yield atRead More →
Fed holds steady The Federal Reserve held interest rates steady in a decision released Wednesday 20th September 2023, while also indicating it still expects one more hike before the end of the year and fewer cuts than previously indicated next year. That final increase, if realised, would be it forRead More →
At 4.33%, the 10-year Treasury yield in the U.S. is at its highest in 16 years. That represents a risk-free, long-duration asset with relatively high returns and this is challenging the stock market. Why should traders invest in stocks that may not return as much, or just slightly more andRead More →
New FED Payment System The FEDNOW payment system is a new instant payment infrastructure developed by the Federal Reserve that allows financial institutions of every size across the U.S. to provide safe and efficient instant payment services. Live system It went live on July 20, 2023 and enables individuals and businesses to send andRead More →