Jerome Powell is out as Fed Chair, but he’s not leaving entirely. Kevin Warsh steps in after a razor-thin Senate vote, and the Fed could look very different before long.
Changes at the Federal Reserve: New Leadership, New Direction Read More »
When the dollar weakens, hard assets rise, living costs rise, and eventually interest rates rise, households feel the pain last, but most. The FED held interest rates steady. Gold and Silver are up sharply. The Dollar is Down. Why Trump might want a weaker Dollar. How a weaker Dollar affects you. The Big Picture on the Dollar, Gold & Silver.
FED Holds Steady- Dollar Declines Read More »
On September 17th, the Federal Open Market Committee finally trimmed its benchmark lending rate by 0.25%, bringing the target range to 4.00%–4.25%. It’s the Fed’s first cut since December 2023, and typically, a rate cut signals that policymakers are bracing for softer growth and cooler consumer spending. But with inflation still “running hot,” why are they easing?
Fed’s First Rate Cut in Nine Months Read More »
In anticipation of the September 25-26 Fed meeting, CNBC ran this headline (Sept. 21): “Record High Stocks Face Fed Rate Hike.” implying that the Fed’s interest rate decisions actually affect the stock market. Common wisdom says that “falling interest rates means higher stock prices, while rising interest rates means lower stock prices.” At first blush this might sound logical because rising interest rates makes fixed income investments more attractive because they pay more and have less risk than stocks. So some of the available capital will flow into bonds, etc. thus starving the stock market and putting downward pressure on prices. In this article, Elliott Wave International contends that there is actually no consistent relationship between interest rates and the stock market and they present examples of how the exact opposite of what you would expect has happened.
Do the FED’s Interest Rates Affect the Stock Market? Read More »
After the president of the United States, the most powerful person on the planet is the chairman of the Federal Reserve. By simply choosing to utter the right words, the chairman of the Fed can create or extinguish trillions of dollars of wealth both in and outside of the U.S. He holds the economic fate of billions of people in his hands. So it’s no shocker that investors carefully parse everything he says.
The Fed’s Alice In Wonderland Economy – What’s Next? Read More »
The Bank of England’s recent announcement on interest rates represented a double-edged sword for savers. Under the new leadership of Mark Carney, the bank unveiled a radical new policy of ‘forward guidance’ that promises to keep rates on hold until official unemployment figures fall from their current rate of 7.8% to 7%. According to the bank’s predictions, this could see interest rates remain at ultra-low levels until after the 2015 General Election.
Savings Tips for Brits Read More »
In 1977, Congress amended The Federal Reserve Act, stating the monetary policy objectives of the Federal Reserve are “to promote effectively the goals of maximum employment, stable prices and moderate long-term interest rates”.
Tapering Bets Could Backfire For Stock Bears Read More »
This chart debunks a long-held myth. Back in the day, one of the first things I “learned” about investing was that low or declining interest rates are good for stock prices. I’ve since had to “unlearn” this. A certain market commentator recently reminded me of the “lower rates equal higher stocks” myth. He opined that
Do Low Interest Rates Power Stocks Higher? Read More »
The MIP (Moore Inflation Predictor) is our proprietary index that projects future inflation rates one year into the future. It uses a “fan” style with varying level of likelihood that certain rates will be attained. If you are considering refinancing (see When is it Right to Refinance? ) naturally you want the best rate. In
Using the MIP to Decide- When to Refinance Read More »
By David Galland, Managing Director, Casey Research Does the price action of gold of late make you scratch your head, falling as it has from its recent high of $1,420 to $1,359 as I write? Hard not to make one wonder, considering the nature of so much recent breaking news… Consumer prices in December exceeded
