Entries filed under 'Federal Reserve'

    The Fed Faces a Changed World

    January 27, 2016 4:48 PM by Zane Brown

    The U.S. Federal Reserve’s January policy statement acknowledged global market turmoil and implied a less aggressive pace of rate hikes.

    What a difference a month makes. The world in which the U.S. Federal Reserve (Fed) conducted its two-day policy meeting on January 27 is quite a different place than the one that characterized its previous meeting in mid-December. 

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    How Could ECB-Fed Divergence Affect LIBOR?

    December 28, 2015 11:45 AM by Zane Brown

    Here’s a look at how the benchmark lending rate might respond to the differing policy paths of U.S. and European central banks.

    How can we expect LIBOR—more formally, the London Interbank Offered Rate—to react if the European Central bank (ECB) is aggressively easing its monetary policy while the U.S. Federal Reserve (Fed) does the opposite?

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    The Fed Awakens

    December 16, 2015 4:13 PM by Zane Brown

    The long-awaited interest rate hike by the U.S. Federal Reserve is now a reality. Perhaps more important to investors, policymakers indicated that they may not be in a rush to tighten further. 

    As the NASA hands at Mission Control might say, “We have liftoff.” The U.S. Federal Reserve’s (Fed) policy-setting arm, the Federal Open Market Committee (FOMC), delivered its long-promised 25 basis-point increase in the fed funds rate at the conclusion of its meeting on December 15–16. The Fed’s last rate hike was in June 2006.

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    The Fed: Why This Rate Hike Will Be Different

    December 15, 2015 2:46 PM by Zane Brown

    The anticipated tightening move by the U.S. Federal Reserve on December 16 would feature some new wrinkles. Here’s an explanation of the process.

    A December rate hike by the U.S. Federal Reserve (Fed) will be the first such move since June 2006. For many advisors, it will be the first rate hike in their career. It also will mark something of a first for the Fed, too.

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    Will a Fed Hike Spell Trouble for the Yield Curve?

    December 14, 2015 10:47 AM by Timothy Paulson

    The central bank likely will raise rates at its December meeting. But the move may not play out in the markets the way investors think.

    With markets finally pricing in an imminent rate hike by the U.S. Federal Reserve (Fed), it is time to focus on what may come afterward. 

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