①Interest-rate rises aredauntingbecause much of the world has got used to an era of almost-free money. ②No G7 central bank has set interest rates above 2.5% in over a decade. ③Back in 1990 all of them were above 5%. ④Cheap financing has come to seem like anindeliblefeature of r...
[translate] ahe Fed began cutting interest rates four years ago at the start of the financial crisis. The rate cuts took the federal funds rate, the key for short-term interest rates, from 5.25 percent down to near zero, where they have stayed since December 2008. [translate] ...
The target range for the federal funds rate was previously set near zero in March 2020 to stimulate the U.S. economy at the start of the COVID-19 pandemic. The central bank also embarked on an unlimited bond-buying program to prop up markets and reduce long-term borrowing costs. Now the...
aSome years ago (before the outbreak of the financial crisis) most of the major central banks—in general—shifted to interest rate control. But does this fact render obsolete the IS-LM scheme, which is apparently tied to money supply control? It seems that some economists think so and repl...
Although the Fed has cut rates twice in recent months, yields on competitive CDs remain higher than they’ve been in a decade, outside the current rate cycle. “The Federal Reserve raised interest rates at the fastest pace in 40 years during 2022 and 2023 in an effort to rein in ...
Jerome Powell has about two years in his current term as chairman. He suggested to us the likely time for the first interest rate cut would be the middle of the year-- a few months before the election. Scott Pelley: Your decisions inevitably are going to have a bearing on this year's...
When I mention to other economists that real rates rose dramatically between July and November 2008, the reaction is usually: “Oh my gosh, I never noticed that.” Then they scramble around for some way to discredit my argument. Perhaps the real interest rate in the TIPS market is not the...
A year ago, many analysts were predicting that widespread layoffs and sharply higher unemployment would be needed to cool the economy and curb inflation. Yet job growth has been steady. The unemployment rate, at 3.7%, isn’t far above a half-century low. ...
Larry’s bank account has a “floating” interest rate on certain deposits. Every year the interest rate is adjusted. Larry deposited 20,000 three years ago, when interest rates were 7% (annual compounding). Last year the rate was only 6%, and this year the rate fell again to 5%. How ...
Japan’s central bank could end negative interest rate policy, marking its first hike in 17 years 03:43 PineBridge: Japanese government is less sensitive about Yen weakness than disorderly Yen move 05:00 Former BOJ Official: Private markets can effectively absorb Japan’s expanding g...