Investors with all-cash offers flocked into the housing market before rate hikes, helping to push sales of existing homes to 6.5 million in January at an annualized rate. … READ MORE >
interest rates
U.S. January consumer price index: Inflation continues to surge
The top-line increase of 0.6% in January and 7.5% on a year-ago basis will intensify market speculation about a 50 basis-point hike at the March meeting. … READ MORE >
Bank of Canada keeps rates steady but prepares for rate hikes ahead
The Bank of Canada kept its policy rate at 0.25% at its January meeting on Wednesday as it prepares to hike rates in March and subsequently draw down its balance sheet. … READ MORE >
Monetary and fiscal policy in a changing economy: Why the natural rate of interest is key to Fed policy
The natural rate of interest, also known as r-start, forms the basis for setting the Fed’s overnight policy rate and, by extension, interest rates across all maturities. … READ MORE >
Price stability now a paramount concern as inflation hits 7%
The Consumer Price Index rose to a 7% annual rate in December, presenting a challenge to the Federal Reserve as it attempts to restore price stability. … READ MORE >
Monetary and fiscal policy in a changing economy: The Fed’s mandate for price stability
In the year ahead, the economy and financial markets will be influenced by how the Federal Reserve strikes a balance between its dual mandates of full employment and price stability. We examine the challenge of keeping prices stable. … READ MORE >
FOMC meeting: Setting the stage for three rate hikes in 2022
The Federal Reserve on Wednesday set the stage for multiple increases in the federal funds policy rate next year by accelerating the tapering of asset purchases to $30 billion per month, up from $15 billion. The tapering should be wrapped up by March. … READ MORE >
RSM US Financial Conditions Index: Setting the stage for sustained growth
In its current reading, the RSM US Financial Conditions Index indicates a level of accommodation that is more than 1.4 standard deviations above normal. … READ MORE >
The LIBOR transition could affect manufacturing companies
Given the various departments, business units and locations that are part of global manufacturing companies’ structure, the direct and indirect exposures can be quite substantial. … READ MORE >
FOMC meeting: Prelude to tapering amid global financial turbulence
This week’s FOMC meeting is not likely to include any meaningful announcement on tapering its monthly asset purchases and only a modest change in the Fed’s Summary of Economic Projections and dot plot interest rate forecast. … READ MORE >