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federal reserve interest rates

Odds of a Fed Interest Rate Hike in December Just Increased Dramatically

december rate hike

The odds of a Fed interest rate hike in December dramatically increased over the weekend.

One of the biggest reasons why was a strong October jobs report. The U.S. Labor Department reported Friday that non-farm payrolls rose 271,000 last month. The unemployment rate dipped to 5% from 5.1% and now sits at a level considered "full employment."

Here's what you need to know...

Will the Fed Raise Interest Rates in December?

The Fed

Those who have been asking "will the Fed raise interest rates in December?" received an update Wednesday from U.S. Federal Reserve Chairwoman Janet Yellen.

Speaking to the House Financial Services Committee, Yellen said the economy is "performing well," and that a December rate hike is a "live possibility."

Here's what you need to know....

Will There Be a December Rate Hike?

Gold prices Today

After the U.S. Federal Reserve left interest rates unchanged Wednesday, investors are asking, "Will there be a December rate hike?"

The fact that the Fed did not raise interest rates at the October meeting was not a surprise. But the Fed's shift in attitude was unexpected. The U.S. central bank struck a hawkish tone on the economy, saying it "has been expanding at a moderate pace" despite slowing monthly job gains.

Here's what that means for a December rate hike...

When Will the Fed Raise Interest Rates?

will the Fed raise interest rates

With the FOMC meeting ending today, investors have been asking, "When will the Fed raise interest rates?"

It will be at least another two months before the central bank makes a move. U.S. central bankers have decided once again to leave interest at rock-bottom levels.

Surprising market participants was the Fed's hawkish tone suggesting a December liftoff is possible...

When Will the Fed Raise Rates?

when will the Fed raise rates

In August, Money Morning Capital Wave Strategist Shah Gilani answered the question, "When will the Fed raise rates?"

On Aug. 24 -- "Black Monday" -the Dow Jones Industrial Average fell 1,089 points minutes after market open due to a stock market crash in China. The DJIA ultimately lost 586 points that day. Black Monday changed the Fed's outlook over a rate hike in 2015.

Watch the video to get Gilani's prediction on when the Fed will raise rates now...

U.S. Markets Down Ahead of Janet Yellen Speech Tonight

dow jones industrial average

U.S. markets opened sharply lower Thursday as many investors await the Janet Yellen speech tonight at 5:00 p.m. ET at the University of Massachusetts.

During the Janet Yellen speech, investors will be looking for any clues that the Federal Open Market Committee (FOMC) will raise interest rates this year for the first time in nearly a decade.

Here's what investors can expect tonight...

Stock Market Today Down Ahead of This Week's Fed Meeting

US Fed reserve

The U.S. stock market today (Monday) opened lower as investors cautiously await this week's FOMC meeting. At the meeting, Fed officials will decide whether to raise interest rates for the first time since June 2006.

The Dow Jones Industrial Average, S& 500, and Nasdaq all opened firmly lower this morning. Just after noon, the three major benchmarks were down 0.44%, 0.48%, and 0.46%, respectively.

Here's what else investors need to know about the FOMC's impact on the stock market today...

FOMC Meeting This Week: What to Watch For

The Fed

The September FOMC meeting takes place this week when U.S. Federal Reserve officials gather for a two-day assembly on Wednesday and Thursday (Sept. 16-17).

This is the Federal Reserve’s sixth scheduled meeting of 2015, with meetings in October and December to follow. A press conference by Fed Chairwoman Janet Yellen will follow the FOMC meeting.

Here's what investors are watching for during this week's FOMC meeting...

Bill Gross: Why QE Will End Before the Fed Wants It To

Pout Q

Legendary bond guru Bill Gross doesn't think too highly of the Federal Reserve and Ben Bernanke's monetary policies.

"There comes a point when no matter how much blood is being pumped through the system as it is now, with zero-based policy rates and global quantitative easing programs, that the blood itself may become anemic, oxygen-starved, or even leukemic, with white blood cells destroying more productive red cell counterparts," Gross writes in his June investment outlook titled Wounded Heart.

Gross believes that QE, which he describes akin to a bad dose of chemotherapy, will end later this year but not because of a suddenly strengthening economy.

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Do We Really Need the Federal Reserve System?


Abolishing the Federal Reserve System might seem like a drastic idea, but not when you get the full story...

You see, Congress created the U.S. Federal Reserve System to restore public confidence, provide the banking system a source of liquidity that would prevent its collapse and protect the public against inflation.

A century later, the banking system is so big its risks dwarf the Fed's liquidity capacity, and what cost a buck back then now will set you back $21.

That's why we asked Money Morning Chief Investment Strategist Keith Fitz-Gerald to explain how the Federal Reserve System actually helps a country's economy.

Most importantly, we wanted to know if the United States - or any country - even needs the Fed anymore.

Just listen to Fitz-Gerald's answer in the following interview.

Why Ben Bernanke's Market Manipulation is So Brilliant

Nothing lasts forever. On Wednesday, Ben Bernanke threatened to take away the punch bowl. Shah Gilani explains the real story behind the move. Read more...

7 Reasons Not to Trust the Bernanke Testimony to Congress

Lie. Pinocchio with a long nose.

As usual, the markets were hanging on every word of the Bernanke testimony to Congress today (Wednesday).

By now, everyone should know better.

In the years that U.S. Federal Reserve Chairman Ben Bernanke has been a member of the Fed - both as a member of the Board of Governors from 2002 to 2005, and in his two terms as chairman beginning in 2006 - he has been stupendously wrong time and time again.

Bernanke gave the markets what they wanted by hinting that his monetary easing policies won't change any time soon, pushing both the Dow Jones Industrial Average and the Standard & Poor's 500 Index up more than 0.5% in midday trading.

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What You Absolutely Need to Know About Money (Part 8)

isolated toy abacus

Shah Gilani explains how the "extend and pretend" game became an institutionalized national treasure... Read more...

What You Absolutely Need to Know About Money (Part 7)

By the start of the 1960s, banking in America was in a state of flux. And as Shah Gilani explains it got ugly fast. Read more...

The New Crisis Warning Just Issued to the Federal Reserve


Before the housing market crash, economists warned that record low-interest and mortgage rates were fueling a housing bubble.

Unfortunately, those fears were both overlooked and underestimated.

Now, an advisory council to the U.S. Federal Reserve is warning the Fed that its record $85 billon-a-month stimulus and ultra-low interest rates are fueling new bubbles in student loans and farmland.

"Recent growth in student-loan debt, to nearly $1 trillion, now exceeds credit-card outstandings and has parallels to the housing crisis," according to minutes of the council's Feb. 8 meeting.
In addition, "agricultural land prices are veering further from what makes sense," the council said. "Members believe the run-up in agriculture land prices is a bubble resulting from persistently low interest rates."

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