Tag: Interest Rates

As mortgage rates hover near historic lows, will Americans be able to take advantage of the savings?

Mortgage rates resisted the temptation to move upward after hitting the highest level in months a week ago. But research suggests that many households won’t manage to take advantage of the potential savings the low-rate environment represents. The 30-year fixed-rate mortgage averaged 2.86% for the week ending Aug. 19, down one basis point from the […]

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Strong jobs report is not a game changer for Fed policy, Wells Fargo suggests

The latest jobs report may not be a game changer for the Federal Reserve’s easy money policies. According to Wells Fargo Securities’ Michael Schumacher, it’s premature to assume July’s strong numbers will push the Fed meaningfully closer to tapering its monthly bond purchases. “This report was pretty strong. Not a blockbuster,” the firm’s head of […]

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Fed holds rates near zero, says economy has gotten better even with pandemic worries

The Federal Reserve on Wednesday held its benchmark interest rate near zero and said the economy continues to progress despite concerns over the pandemic spread. As expected, the Federal Open Market Committee concluded its two-day meeting by keeping interest rates in a target range near zero. Along with that, the committee reiterated its view that […]

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‘Day of reckoning’ is coming for high-flying tech stocks, Wells Fargo warns

Wells Fargo Securities’ Chris Harvey is doubling down on his Big Tech warning, saying a “day of reckoning” is ahead. He’s urging investors to take profits in light of risks associated with rising interest rates. “The premium that you’re paying is still exceptionally high,” the firm’s head of equity strategy told CNBC’s “Trading Nation” on Friday. […]

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Beware of inflation ‘headwinds’: It could take a year to break even after a 10% to 20% market correction, economist Mark Zandi warns

Moody’s Analytics Mark Zandi has a message for investors: Brace for a significant market correction. The firm’s chief economist expects a more hawkish Federal Reserve will spark a 10% to 20% pullback. And, unlike the sharp drops over the past several years, Zandi anticipates a quick recovery won’t be in the cards particularly because the market […]

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Fed’s Kashkari opposed to rate hikes at least through 2023

Minneapolis Federal Reserve President Neel Kashkari said on Friday he wants to keep the U.S. central bank’s benchmark short-term interest rate near zero at least through the end of 2023 to allow the labor market to return to its pre-pandemic strength. “The vast majority of Americans want to work, and I am not ready to […]

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Brace yourself, here’s why inflation could create a ‘giant wealth transfer’ from lenders to borrowers

Higher prices for rental cars, airplane tickets and uncooked beef roasts have economists and consumers wondering whether we’re living through the start of an inflationary period.  It remains to be seen whether these price hikes are just a temporary blip resulting from a pandemic-era mismatch of supply and demand or an indication of inflation, an […]

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