(Bloomberg) — The Federal Reserve will unveil details of what policy makers debated last month that may shed light on how they view the near-term path for interest rates amid surging inflation and signs of a slowing economy. Chair Jerome Powell has said the Fed could hike by either 50 basis points or 75 basis […]
Read More(Bloomberg) — What’s safer than short-duration bonds? Even shorter duration debt. As investors brace for an increasingly aggressive Federal Reserve, money is flooding into cash-like ETFs — which are seen as relatively less vulnerable to interest-rate risk. Traders have been piling into exchange-traded funds mostly focused on ultra-short instruments like Treasury bills, while offloading ETFs […]
Read More(Bloomberg) — U.S. inflation-adjusted consumer spending fell last month by the most since February, suggesting that Americans tempered their outlays amid the latest Covid-19 wave and the fastest inflation in nearly 40 years. Purchases of goods and services, adjusted for changes in prices, decreased 1% from November, the Commerce Department said Friday. The personal consumption […]
Read More(Bloomberg) — The cost of borrowing money in Turkey is surging, a sign that President Recep Tayyip Erdogan’s policy of driving down interest rates is starting to backfire. Since the central bank began slashing rates in September, the yield on 10-year government bonds has climbed more than 7 percentage points, touching an all-time high of […]
Read More(Bloomberg) — Traders are increasingly betting that the Federal Reserve’s cycle of interest-rate hikes, which hasn’t even gotten underway yet, will fizzle out sooner rather than later. Parts of the curve for eurodollar futures, which among other things are used by traders to bet on the direction of central bank policy, have been inverting over […]
Read More(Bloomberg) — Big Tech stocks may be defying the biggest outbreak of bond volatility since April 2020, but a cohort of Wall Street strategists warn that a spike in real interest rates could finally knock them from all-time highs. With the Federal Reserve likely to announce the paring of pandemic stimulus this week, Wells Fargo […]
Read More(Bloomberg) — Scott Peng knows trouble when he sees it — and right now he detects it all over markets thanks to an oncoming interest-rate “tsunami.” The Advocate Capital Management executive — who helped uncover the biggest scandal in modern banking with a damning 2008 report on Libor manipulation — has a plan. He’s launching […]
Read MoreBofA warns of 0% returns over the next 10 years — but here’s the 1 key strategy to fight it Are stocks setting up for another decade of monstrous returns? Bank of America doesn’t think so. In fact, the banking giant’s valuation model is forecasting a flat return for the stock market over the next […]
Read MoreIn a world of paltry 0.06% interest rates, these income stocks yield up to 10.2% Earning a healthy passive income isn’t easy these days. Despite rate and inflation fears all over the news, the national average interest rate for savings accounts remains at a measly 0.06%. And thanks to the massive bull run over the […]
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