Wall Street rises Nov 5, 2009
Traders in the Eurodollar options pit at the Chicago Board of Trade signal orders shortly after the Federal Reserve's decision to leave short-term interest rates untouched between zero and 0. 25 percent in Chicago, Nov. 4, 2009. (Xinhuanet, China)
Press Release: Statement at the Conclusion of an IMF Article IV Consultation with Kenya Oct 31, 2009
The Central Bank of Kenya (CBK) adhered to its monetary target, and given the weakening demand for private sector credit, short term interest rates declined, contributing to an easing of budgetary pressures on domestic debt service. CBK s international reserves which accumulated over a long period were used to partly finance the widening current account deficit in the face of mounting depreciation pressures on the exchange rate. (IMF News)
Bangladesh—2009 Article IV Consultation: Preliminary Conclusions of the IMF Mission Oct 31, 2009
This caused reserve money growth to accelerate to 32 percent in June 2009; banks excess reserves rose sharply and short-term interest rates declined below 1 percent. Already certain financial institutions have increased their dependency on short-term funding, exposing themselves to the fluctuations of the money market. (IMF News)
Obama Bridge to Growth May Go Nowhere as Feldstein Warns of `Double Dip' Oct 30, 2009
The Federal Open Market Committee may opt next week to soften its suggestion that short-term interest rates will stay at exceptionally low levels for an extended period in order to give it more flexibility to change policy in the future, , co-head of global economics for Morgan Stanley in New York, said in a report to clients on Oct. 26. Policy makers, who have set a target of zero to 0. (Bloomberg -- US)
Red Flags for Junk Bonds Oct 30, 2009
The mood shift in the junk-bond market owes much to the trillions of dollars' worth of bailouts, backstops, and monetary and fiscal packages, a reality that seems to have been lost on investors' hunt for higher yields amid extraordinarily low short-term interest rates. "The Fed," laments hedge fund guru Jeremy Grantham, "is beating investors into buying junk and other risky assets, a hair-of-the-dog strategy if ever there was one." So ferocious has the stampede into junk been that the bonds now... (BusinessWeek)
2 who called financial crisis fear world of pain looms for stocks Oct 29, 2009
Currently, improving corporate earnings and the massive liquidity generated by government bailouts and stimulus, as well as short-term interest rates at close to 0% in the USA, are bullish factors outweighing economic sluggishness, he says. Neither Rosenberg nor Roubini dispute that the wall of cash chasing assets and current momentum driving stocks can push stock prices higher in the short term. (USA Today -- Money)
When Will Mortgage Rates Go Up? Oct 28, 2009
Manipulating short-term interest rates is not the only way the federal government influences the housing market. In my next column I'll discuss the Fed's policy on purchasing mortgage backed securities which gives it a powerful tool to manipulate long term rates as well as the first-time home buyer's tax credit. (BusinessWeek)
India's central bank holds interest rates Oct 27, 2009
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India's central bank holds rates Oct 27, 2009
Economists had anticipated the decision to hold short-term interest rates, saying any hike would likely come later this year or in early 2010 once a recently observed economic uptick had become entrenched. "The precise challenge which the bank faces is to support the recovery process without compromising on price stability," Reserve Bank of India governor Duvvuri Subbarao said in the statement. (Sydney Morning Herald -- World)
Back-Door Taxes Hit Americans With Public Officials Financing in the Dark Oct 26, 2009
who was county treasurer leading up to the 1994 bankruptcy, bought structured notes that paid off when short-term interest rates were lower than medium-term rates, and increased his gamble with funds from issuing new debt. The county lost $1. (Bloomberg)
Central Jersey Bancorp Reports Operating Results for Third Quarter of 2009 Oct 23, 2009
The decrease in both the average yield on interest-earning assets and the average cost of deposits and interest-bearing liabilities for the three and nine months ended September 30, 2009 was primarily due to the significant reduction in the general level of short term interest rates and the 500 basis point reduction in the Prime Rate of interest which occurred between September 2007 and December 2008. The average net interest margin for the three and nine months ended September 30, 2009 was 3. (Primezone Releases)
Stock questions? Ask Matt Oct 23, 2009
Sometimes they're triggered by government actions, such as increased taxes or the 's changes to short-term interest rates. Corrections can also start when economic data on job creation, inflation or manufacturing point to trouble. (USA Today -- Money)
New Jersey Pays Goldman Sachs for Interest-Rate Swaps on Nonexistent Bonds Oct 23, 2009
Auction-rate obligations involved in the transaction were supposed to allow borrowers to realize short-term interest rates on long-term debt by offering the bonds for periodic resale. The market froze after banks that historically volunteered to buy unwanted securities stopped doing so during the global credit crisis. (Bloomberg -- US)
Dollar depreciation: Denial or acceptance Oct 23, 2009
Foreign capital has flooded in, attracted by the healthy prospects for economic growth and high short-term interest rates. That has pushed up local stock prices, as well as the real, Brazil s currency. (The Economist)
Heritage Commerce Corp Reports Financial Results for Third Quarter 2009 Oct 23, 2009
The decrease in the net interest margin from the third quarter of 2008 was primarily the result of the 175 basis point decline in short-term interest rates from October 8, 2008 through December 16, 2008. Noninterest income was $2. (Primezone Releases)
Euro breaches $1.50... Oct 22, 2009
As the economy strengthens, the Federal Reserve is likely to begin raising short-term interest rates to fend off inflation. AP Business Writer Tali Arbel and Energy Writer Mark Williams contributed to this report. (The Drudge Report)
Dollar hits 14-month low against the euro Oct 22, 2009
Analysts believe that gap could widen if, as many expect, the European Central Bank moves before the Fed does to raise short-term interest rates. Improving earnings from major U.S. companies sent stocks higher, putting downward pressure on the dollar as well as Treasurys, which are also seen as safe-haven investments. (MSNBC -- Business)
Dollar's fall renews fears of higher oil prices Oct 22, 2009
As the economy strengthens, the Federal Reserve is likely to begin raising short-term interest rates to fend off inflation. Most Viewed. (The Star Online, Malaysia -- Business)
Central Valley Bancorp profits fall Oct 22, 2009
President and chief executive J. Mike McGowan said the results reflect the challenging times, including "unprecedented low short-term interest rates and continuing softness in local economic conditions, including real estate markets.". DuPont reports rise in 3Q profit. (Fresno Bee)
Loonie Tumbles Most in Four Months After Central Bank Warns on Strength Oct 21, 2009
The yield on June 2010 bankers acceptance futures, a barometer of short-term interest rates, rose as much as 17 basis points, the most since April, as traders cut bets the nations central bank will raise borrowing costs sooner rather than later, according to Love. The yield on the futures moves inversely to expectations for interest rates. (Bloomberg -- Canada)
Bond Funds: Behind Dan Fuss' Stellar Record Oct 19, 2009
Overall, corporate balance sheets look pretty good because corporations rushed to borrow debt when the window opened to capitalize on short-term interest rates, he says. Fuss muses that about half of the companies that came to market did so just because they could which means they have extra cash on hand to grow their businesses or invest in technology upgrades. (BusinessWeek)
Federal deficit hits record $1.42 trillion Oct 17, 2009
That could happen several ways higher inflation could push the to increase the short-term interest rates it controls, or the dollar could slump in value, or a combination of both. The projects that the nation's debt held by investors both at home and abroad will increase by $9. (USA Today -- News)
Premier Valley Bank earnings drop 61.6% Oct 16, 2009
President and chief executive J. Mike McGowan said the results reflect the challenging times, including "unprecedented low short-term interest rates and continuing softness in local economic conditions, including real estate markets.". McGowan said the bank is building capital and reserves and is well-positioned for the future. (Fresno Bee)
Dollar mixed in calm holiday trade Oct 13, 2009
"Short-term interest rates are near zero and the Fed is likely to print an additional half-trillion dollars between now and the end of 2010.". The US currency had come under pressure recently from speculation that the United States would be slower to tighten monetary policy than other central banks. (Business Report, South Africa)
Canada's Currency Climbs, Bonds Tumble on Employment Gains, Growth Outlook Oct 10, 2009
The yield on March bankers acceptance futures, a barometer of short-term interest rates, rose as much as nine basis points as the contract traded as low as 99. 26 on speculation a quickening recovery will force the central bank to raise rates before mid-2010, according to , a trader of interest- rate derivatives at Le Group Jitney Inc., a Montreal brokerage. (Bloomberg -- Canada)
How to disarm theliquidity bomb Oct 7, 2009
In 1930-32, the Fed kept nominal short-term interest rates around 1% to 2%, very low by historical standards, while long-term Treasury rates declined ... Higher short-term interest rates would give US savers at least a zero real after-tax risk-free return on their money, thus ending the odious Keynesian "euthanasia of the rentier" that Bernanke and his predecessor, Alan Greenspan, have been undertaking since 1995. (Asia Times Online)
Gerdau, Tam, Dufry Set to Rise on Demand After Rio Wins Olympics Victory Oct 5, 2009
Increased spending will boost demand for capital and may lead to higher short-term interest rates, Citigroups Dennis said. Rio Victory. (Bloomberg -- Latin America)
Buttonwood: A lot to swallow Oct 2, 2009
Central banks had slashed short-term interest rates almost to zero. A flight to safety had pushed government-bond yields in many countries down to 2-3. (The Economist)
Time to increase supply of shares Oct 2, 2009
Short-term interest rates are close to zero in most of the developed world including the United States, making investment in money market funds almost futile. Those funds are now beginnin 00004000 g to move to equities as the global economy recovers and risk appetite improves. (India Times)
ICAP Says First-Half Pretax Profit to Be `Slightly Lower' Than Year Before Oct 1, 2009
Manyof the markets in which we operate are benefiting from the continuinglow short-term interest rates, steepyield curves and substantialcorporate and government bond issuance, Spencer said in the statement. Both credit and equity derivatives have experienced more difficult conditions. (Bloomberg -- UK)
Off with their blinkered heads Oct 1, 2009
Then again, the Bank of England recently lowered short-term interest rates to their lowest levels since the late 17th century. Who knows how far the retro craze will go. (Asia Times Online)
'Unloved' bull: Wary investors are hands off as stocks surge Oct 1, 2009
He also argues that last week's Federal Reserve statement that reiterated its belief that the recession was effectively over, that it would keep short-term interest rates low for an extended period, and that inflation remains subdued amounts to a "sweet spot" for investors ... A main point espoused by the bulls is that many of the market's biggest worries and headwinds the longer-term impact of massive government deficits; the drying up of government stimulus; the impact of higher borrowing... (USA Today -- Money)
Bond Traders Are Doubters, Lemmings or Sissies: Caroline Baum Sep 30, 2009
Why are bond traders so blas when short-term interest rates have nowhere to go but up, the U.S. economy is recovering, the Fed is ending its purchases of Treasury notes and bonds, the Treasury is continuing to sell notes and bonds, the is sinking, and foreign central banks are making noises about the out-of- control U.S.. Ive already lost a fair amount of money trying to answer that question, says , a partner at Mt. Lucas Management Corp. in New York. (Bloomberg -- Columnists)
Fed's bloom is brief as stocks pull back Sep 25, 2009
The central bank's governors said the pace of economic activity has "picked up" since their last meeting in August, and they said they would keep short-term interest rates at historically low levels near zero "for an extended period.". HonoluluAdvertiser. (Honolulu Advertiser)
Fed stands pat on rates, says spending still slow Sep 25, 2009
WASHINGTON The Federal Reserve yesterday maintained short-term interest rates at near zero and offered no indication of any imminent change in that policy, even as the central bank gave a more upbeat assessment of the U.S. economy. Since its previous monetary policy meeting in mid-August, "economic activity has picked up following its severe downturn," the Fed said in a statement. (Honolulu Advertiser)
Stocks fall despite Fed's more upbeat view of recovery Sep 24, 2009
The Fed also said it would keep short-term interest rates at their historically low levels "for an extended period." That allayed any lingering concerns that the Fed was considering a rate increase, something it will have to do eventually in order to keep inflation in check. Higher interest rates would protect against prices creeping higher, but it would also mean greater borrowing costs for banks and businesses, a negative for both stocks and bonds. (USA Today -- Money)
The Case for Higher Interest Rates Sep 24, 2009
If the Goldilocks Economy is getting a tad overheated, the Fed withdraws money and raises short-term interest rates. Businesses and consumers borrow and spend less, and Goldilocks breathes a sigh of relief. (The American Conservative)
Wall St. Falters Despite Fed's Upbeat View Sep 24, 2009
The Fed's governors said the pace of economic activity has "picked up" since , and said they would keep short-term interest rates at historically low levels near zero "for an extended period.". That allayed any lingering concerns that the Fed was considering a rate increase, something it will have to do eventually in order to keep inflation in check. (CBS News)
Despite positive Fed report, stocks decline Sep 24, 2009
The central bank s governors said the pace of economic activity has picked up since August, and they will keep short-term interest rates near zero for an extended period. Investors were encouraged, but not enough to propel the Dow past 10,000. (Boston Globe)
Dollar hits 1-yr low, Asia stocks at 13-mth high Sep 23, 2009
New Zealand short-term interest rates were hit hard by the building expectations of a coming rate rise. One-year swap rates rose 7 basis points to 3. (India Times)
Vietnam's dong teeters towards crisis Sep 22, 2009
mid-2008, and Hanoi responded by increasing short-term interest rates, implementing price controls and announcing cutbacks in "inefficient" government spending. The country was saved from runaway inflation by the global financial meltdown in late 2008, which depressed global commodity prices and demand. (Asia Times Online)
It'll take a while for U.S. to recover from deep slump Sep 21, 2009
Behind the turnaround: aggressive monetary easing by the Fed, which brought short-term interest rates down to 8. 5 percent from 15 percent in 1982. (Honolulu Advertiser)
US ends money market guarantee program Sep 21, 2009
They pay dividends that generally reflect short-term interest rates. AFP. (Sydney Morning Herald -- Business)
Fed expected to hold steady to back fragile recovery Sep 20, 2009
" With the federal funds rate seemingly frozen at zero to 0.25 per cent, the central bank's only policy option revolves around its various liquidity programmes implemented since last year's credit freeze. The Fed last month indicated it would conclude its 300-billion-dollar programme to purchase Treasury bonds, part of a programme to bring down interest rates which some call 'Quantitative Easing.' It must decide however on whether to extend into 2010 a trillion-dollar programme to purchase... (Channelnewsasia.com)
US Fed expected to hold steady Sep 20, 2009
"They are in no hurry to start raising short-term interest rates but they do have to keep an eye on the end game," he said. This may mean "a little tough talk on inflation" and some "tapering off" of liquidity efforts, he said. (Sydney Morning Herald -- Business)
Staying alive as global markets went up in flames Sep 16, 2009
Credit markets seized up and short-term interest rates rocketed. The US was already in recession. (Sydney Morning Herald -- Opinion)
Answer Desk: Lots of interest in rates Sep 12, 2009
The they youre talking about in this case is the Federal Reserve, which pretty much gets to set short-term interest rates wherever it wants. And while the folks down at the Fed are happy were all saving more these days (which we all are), they dont set interest rates to please savers. (MSNBC -- Business)
Kohn: Inflation Nowhere in Sight Sep 12, 2009
"Short-term interest rates would have to rise very high very quickly for interest on reserves to outweigh the interest we are earning on our longer-term asset portfolio. With the global economy quite weak and inflation low, a large and rapid rise seems quite improbable," Kohn said. Reis also argued that the Fed could target higher inflation in order to lean against the risk that the severe U.S. recession pushes the country into a Japan-style deflation, where falling prices inflicted a decade of... (Newsmax)
Economist warns of higher taxes, inflation, interest rates Sep 10, 2009
But on short-term interest rates, three years and less, you ll see those move higher earlier, maybe as early as the first quarter of 2010. Long-term rates used in mortgages may take a bit longer, Goss asid. (Waterloo Courier, IO)
Canadian Dollar Gains Most Since July as Job Reports Boost Risk Appetite Sep 5, 2009
The yield on March bankers acceptances futures, a barometer of short-term interest rates, fell as much as seven basis points today, the most in a month, as traders increased bets the nations central bank will raise borrowing costs sooner rather than later. The unemployment number came in significantly above expectations, said , a trader of interest-rate derivatives at Le Group Jitney Inc., a Montreal brokerage. (Bloomberg -- Canada)
Unemployment Rises to 9.7% Sep 5, 2009
Continued deterioration in the jobs market means that the Obama Administration can't yet afford to back off its efforts to stimulate growth, and the Federal Reserve will have to continue with its policy of near-zero short-term interest rates for the time being, economists said. Treasury Secretary Timothy Geithner told reporters in Washington this week that efforts to battle the recession must continue, saying, "We've come a very long way, but I think we have to be realistic, we've got a long way... (BusinessWeek)
Economics focus: Jackson's Holes Sep 2, 2009
No one, however, focused much on central bankers responsibility for broader financial stability, or thought much about the financial plumbing through which changes in short-term interest rates affect the broader economy. Now, in the wake of the financial crisis, it is commonplace to demand that central banks must worry about the health of the financial system, not just price stability. (The Economist)
Economist: Midwest recovery a 'fragile' process Sep 2, 2009
He said he expects the Federal Reserve to raise short-term interest rates or reduce its purchases of mortgage-backed securities before the end of the year. "The Fed has got to prepare markets for a reduction in this record monetary stimulus, or risk allowing inflation to get out of control," Goss said. (Sioux City Journal, IO)
Ben Bernanke: The very model of a modern central banker Aug 28, 2009
He also used conventional monetary policy, eventually cutting short-term interest rates close to zero and attempting to lower long-term interest rates by purchasing bonds. But the Fed needed a functioning financial system to transmit the benefits of such actions to the broader economy. (The Economist)
Bernanke Is Obama's Proverbial Bird in the Hand Aug 26, 2009
Volcker wasnt the most popular guy on the block in the early 1980s, hoisting short-term interest rates to 20 percent to fight raging inflation. At one point, farmers lined up outside the Fed on tractors to protest the devastating effect of double- digit interest rates. (Bloomberg -- Columnists)
Bernanke's Low-Rate Fed Future Is Secure Aug 26, 2009
The Federal Reserve is holding short-term interest rates at the lowest levels in history just zero to 0. 25. (BusinessWeek)
US leading economic indicators index rises Aug 21, 2009
The biggest lift came from a positive spread between long- and short-term interest rates, followed by drops in jobless claims, a longer factory workweek, rising industrial supplier deliveries, stock prices and orders for capital goods. Weaker consumer expectations, declining money supply and falling building permits pulled it down. (Sydney Morning Herald -- Business)
Leading Economic Index May Indicate the U.S. Recession Is Close to Ending Aug 20, 2009
A drop in jobless claims, a positive spread between long- and short-term interest rates, a longer factory workweek, faster supplier deliveries and stock prices contributed to the gain, Englund predicted. Decreases in consumer expectations and the money supply limited the gain, he said. (Bloomberg -- US)
Will a market bull be off and running when recession ends? Aug 19, 2009
is also talking about the economy in a more upbeat way, and said last week that it would keep short-term interest rates at about 0% for an extended period in an effort to boost the economy. The optimistic tone is also being driven by economists who are raising their growth forecasts for the second half of the year, which runs counter to the previous consensus of subpar growth in coming quarters. (USA Today -- Money)
Problems with money market mutual funds Aug 18, 2009
Ultralow money market yields are a product of a Federal Reserve committed to very low short-term interest rates and the investment world s flight to safety, which has eased some since last year but remains a powerful force in the market for the most solid short-term securities. No one expects much improvement soon. (Boston Globe)
Trouble Ahead: Obama And The Fed Aug 18, 2009
It will also keep its near-zero target for short-term interest rates for the foreseeable future. But in recognition of the improvement in the economy the Fed will complete its $300 billion program of purchases of Treasury IOUs in October -it has already bought some $240 billion. (CBS News)
Rate cut gives analysts a 'pleasant' shock Aug 15, 2009
Roodt criticised the latest cut in the repo rate, which influences short-term interest rates. He pointed out that longer-term rates had been going up "for very good reasons". (Business Report, South Africa)
Overview: Central bankers add to equities momentum Aug 15, 2009
Shorter-dated yields, which are sensitive to short-term interest rates, fell sharply. The yield on the two-year US Treasury fell 24 basis points during the week from 1. (FT.com -- Markets)
Leander ISD faces budget challenges Aug 14, 2009
Short term interest rates have been lowered from 2 percent to zero. She expects the rate to remain at zero at least through mid-2010. (Cedar Park Hill Country News Weekender, TX)
U.S. Retail Sales Fall, Jobless Claims Up Aug 14, 2009
"It's tough to say the recession is over. We have transitioned from steep decline to a mild decline but we are still declining. The Federal Reserve, in leaving short-term interest rates near zero on Wednesday, said economic activity was leveling out. But it noted that sluggish income growth and continued job losses were constraining household spending, which was showing signs of stabilizing. Consumer confidence is expected to be slightly higher for August in the Reuters/University of Michigan... (Newsmax)
