Interest rates

Allies pay for our nukes by holding US bonds, economists suggest

By Editorial Staff Thu, Apr 5, 2018

The countries that benefit most from American military protection are the ones who hold the biggest share of their foreign reserves in US Treasuries, which may lower our borrowing...

Published April 5, 2018

The Fed Reveals its Game Plan

By Stephen Slifer Wed, Apr 12, 2017

'Given a snail’s pace of removing excessive monetary policy accommodation, it is hard to envision Fed policy threatening the economy any time soon,' a former senior economist at the...

Published April 13, 2017

Fed No Longer Controls Rates

By Brian Singer, CFA Wed, Feb 1, 2017

'We believe the probability of the Fed raising rates three times in 2017 is less than what the market has begun to price in post the Donald Trump election,'...

Published February 2, 2017

Interest rate drought not over: A.M. Best

By Editorial Staff Mon, Jan 23, 2017

'While aggregated industry bond portfolio yields have consistently declined to 4.71% in 2015 from 4.88% in 2014 and 4.99% in 2013, strategic investment decisions have helped mitigate further declines...

Published January 26, 2017

No reason to raise rates now, writes heterodox economist

By Editorial Staff Thu, Nov 17, 2016

In the paper, 'Normalizing the Fed Funds Rate: The Fed’s Unjustified Rationale,' economist Flavia Dantas of SUNY-Cortland, claims that the U.S. job market is much softer than the official...

Published November 17, 2016

Trump and the Trajectory of Interest Rates

By Kerry Pechter Wed, Nov 9, 2016

'There could be pressure for rates to go higher as investors digest the deficit spending pushed by Mr. Trump,' said Andrew McCormick, head of T. Rowe Price’s U.S. taxable...

Published November 10, 2016

Was that a zig (or a zag) on interest rate policy?

By Editorial Staff Thu, Jun 9, 2016

“I know market participants really want to know exactly what’s going to happen,” Fed chair Janet Yellen said in a speech in Philadelphia this week. “There is, as I...

Published June 9, 2016

The Fed’s Risky New Mandate

By Alexander Friedman Thu, May 5, 2016

With the Fed deciding, yet again, to hold rates, their dilemma will only intensify this year: normalize monetary policy in line with domestic fundamentals, or cede to the pressures...

Published May 5, 2016

Half-a-point rise in benchmark rates now expected in 2016

By Editorial Staff Thu, Mar 31, 2016

“I consider it appropriate for the committee to proceed cautiously in adjusting policy,” Fed Chairwoman Janet Yellen said at the Economic Club of New York this week.

Published March 31, 2016

Job anemia puts interest rate hikes into doubt: TrimTabs

By Editorial Staff Thu, Mar 3, 2016

“The labor market is not nearly as robust as the conventional wisdom believes,” said David Santschi, chief executive officer of TrimTabs.

Published March 3, 2016

Fed to roll over Treasuries as they mature

By Editorial Staff Thu, Jan 21, 2016

'Market participants desire certainty, but in the uncertain world in which we live, that desire is not consistent with the policy that would best achieve our objectives,' said William...

Published January 21, 2016

Fed hike will have “no immediate impact” on insurers: A.M. Best

By Editorial Staff Wed, Dec 23, 2015

'Overall, a continued measured rise in rates is a net positive for the life/annuity industry as product spreads improve, investment portfolio yields increase, and other side benefits accrue to...

Published December 24, 2015

Fed raises target overnight rate by quarter-percent

By Editorial Staff Thu, Dec 17, 2015

'Were the FOMC to delay the start of policy normalization for too long, we would likely end up having to tighten policy relatively abruptly at some point,' Janet Yellen...

Published December 17, 2015

Waiting on the Fed

By Kerry Pechter Thu, Dec 10, 2015

'The long end of the curve will stay stable but the front end of the curve will go up, so that we’ll have eventually have 2.5% at the short...

Published December 10, 2015

October rally shows markets’ addiction to low rates: OFR

By Editorial Staff Thu, Oct 29, 2015

“The market-implied probability of a Federal Reserve rate hike in 2015 is now down to approximately 25% to 35%," according to the Office of Financial Research. The estimate came...

Published October 29, 2015

What happens when ‘the Fed yields’?

By Editorial Staff Thu, May 28, 2015

'We would prefer to see the Fed depart from its zero interest rate policy (ZIRP) sooner rather than later,' say analysts at BlackRock Investment Institute.

Published May 28, 2015

America’s Risky Recovery

By Martin Feldstein Thu, Apr 30, 2015

'My own best guess is that will start to raise rates in September, and that the federal funds rate will reach 3% by some point in 2017,'...

Published April 30, 2015

Seniors Weren’t ‘Thrown Under Bus’

By Ben Bernanke Thu, Apr 2, 2015

In this excerpt from the former Fed chairman's first blog post at the Brookings Institution website, he defends himself against the charge that his low interest rate policy has...

Published April 2, 2015

A 100-150 bps rise in rates would help life insurers: Fitch

By Editorial Staff Thu, Jan 8, 2015

Conversely, if interest rates decline to levels seen in 2012 and stay there much beyond 2015, Fitch would likely change the outlook for life insurers to negative, the ratings...

Published January 8, 2015

The Fed Trap

By Stephen S. Roach Thu, Oct 2, 2014

The Fed's assumption that the so-called “wealth effect”—when asset appreciation spurs real economic activity—will hasten a true post-crisis recovery isn't producing the desired results, writes the former Morgan Stanley...

Published October 2, 2014