The graphs below show the average annualized return over these High and Low-Interest Rate Periods for stocks, bonds, and high-yield savings in the past 50 years. It’s clear from this analysis that regardless of whether it was a period of low or high interest rates,on average, equity retu...
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...
“When [the commercial banks of] Hong Kong do start to cut the [prime] rate, it will be positive for local businesses, and be supportive to our capital markets”, Paul Chan Mo-po, the Financial Secretary of Hong Kong, said. “The rate cut overnight in the US has started a new roun...
To be clear, this is not the same sort of inflation that Paul Volcker was taming in 1980 when he raised the Fed funds rate to 20%. McDonald observes, “In 2021, global debt reached a record $303T, according to the Institute of International Finance .… Volcker was jacking rates into ...
Interest Rate Rally May Be Over Short-Term, but Ripple Effects Will Only Worsen Housing SituationFigureFigureFigureFigureFigure
The U.S. Federal Reserve said its Federal Open Market Committee (FOMC) decided to lower its key overnight borrowing rate by 50 BPs, or a half percentage point, to the range of 4.75%-5%, following a two-day meeting. That is the first interest rate cut in four years and the most aggr...
Inflation has fallen from just over 9% to about 3% —near the Fed's ultimate goal of 2%. Scott Pelley: Why is your target rate 2%? Jerome Powell: Interest rates always include an estimate of future inflation. If that estimate is 2%, that means you'll have 2% more that you can cut ...
Dating back to April 1971, the fixed 30-year interest rateaveraged around 7.8%, according to Freddie Mac. So if you haven’t locked a rate yet, don’t lose too much sleep over it. You can still get a good deal, historically speaking — especially if you’re a borrower with strong cr...
The statutory interest rate in the Netherlands remained stable between 2016 and 2022. Statutory interest rate in the Netherlands or wettelijke rente is the interest due as a compensation for losses due to delays for an obligation to pay a sum of money. In other words, it is a rate a cre...
Over the last few months, talks of the Federal Reserve raising interest rates have grabbed headlines. Thecentral bank raised ratesin March for the first time in over three years, and another hike was announced Wednesday. Each of these rate hikes means any debt with a variable interest...