Growth in Services Activity in Middle of U.S.
According to a recent survey by the Federal Reserve Bank of Kansas City, services activity in the middle of the U.S. remained relatively steady in August. While the composite index…
Fed Earmarks 50 Basis Point Rate Increases in Its Next Meetings
(Fed) Minutes of the Federal Reserve in early May have indicated that the central bank intends to increase interest rate by 50 basis points at its “next couple of meetings.”…
Fed to Taper Monthly Bond Purchases by $15B From Nov. As the Economy Rebound
(Federal Reserve) The Federal Reserve will begin reducing the $120 billion monthly bond purchases by $15 billion later this month following traction in economic recovery. The Federal Open Market Committee…
Fed Signals Bond Taper in November and Rate Hikes Next Year in Statement
(Fed) US Federal Reserve is ready to reverse the $120 billion in monthly asset purchases on its next scheduled meeting on November 2-3. The central bank targets to increase interest…
How the Fed Taper Is the Biggest Risk to the Markets Right Now
Ever since the start of the pandemic, central banks across the world have undertaken massive easing measures to support the economy. This could possibly be because of the lessons learned…
Fed’s Powell Remain Optimistic of 2% Inflation Target amid Supply Imbalances
(Bloomberg) Fed’s Chair Jerome Powell expects the central bank to achieve the 2% inflation target once supply constraints subside. Powell acknowledges the uptick in inflation in recent months, a factor…
Fed Sends a Hawkish Tone in Statement, Plans to Hike Rates By the end of 2023
(Federal Reserve) The Federal Reserve projects two rate hikes by the end of 2023 even as officials plan to hold discussions to scale back bond purchases. Fed Chair Jerome Powell…
Fed Likely to Announce Rate Hikes in 2023 in a Dovish Statement-Survey
(Bloomberg) More than 50% of economists in a survey predict the Fed will increase interest rates in 2023 despite an uptick in inflation and a rebounding economy. The economists do…
Fed Plans Undo Corporate Bond Capital as Most Remain Unutilized
U.S Federal Reserve seeks to undo corporate bond capital obtained in 2020 through a backup facility, according to Reuters. The bonds started to cool the lending market at the peak…
Fed: Funding Risk Remain High as Vulnerable Liabilities Rose 13.6% in 2020
Amounts of liabilities vulnerable to defaults, including those of nonbanks, increased about 13.6% to $17.7 trillion last year, according to the Federal Reserve press release. The vulnerabilities amount is now…
Fed: U.S Banks Robust During Pandemic as Leverage Remain Low
U.S banks have sailed the coronavirus pandemic well, according to the Federal Reserve press release. Bank and broker dealers have maintained low leverage, as life insurance companies and hedge funds…
Fed Sees Elevated Business Debt Risks Despite Falling Vulnerabilities
U.S Federal Reserve has warned of heightened vulnerabilities from business debt despite the risk falling since mid-2020. Currently, businesses owe $17.7 trillion, after the debt rose 9.1% or about $425…