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Will an Interest Rate Hike Affect Stocks?

the fed

The Federal Reserve will hold a two-day policy meeting next week on Sept. 16 and 17, and the biggest decision will be whether to impose an interest rate hike.

And that has investors wondering what type of impact an interest rate hike would have on stocks.

Here's everything you need to know now...

Will the Fed Raise Interest Rates?

The Fed

The U.S. Federal Reserve is preparing for a two-day meeting on Sept. 16 and 17, and investors around the world are wondering "Will the Fed raise interest rates?"

The Fed has been adamant about raising interest rates for the first time since 2008 this year, and it looked to be almost certain the rate hike would occur in September.

That was until the markets saw extreme volatility in August. Here's what investors need to know now...

Peter Schiff: "The Fed Won't Raise Rates, It's Part of the Bluff"

The Fed

An all-important U.S. Federal Reserve meeting on Sept. 16-17 will decide whether interest rates will be raised for the first time in nearly a decade.

But Peter Schiff, economist, best-selling author, and CEO of Euro Pacific Capital, doesn't think the Fed is actually even considering a rate hike, despite speculation.

In fact, he predicts the Fed may be forced into QE4. Here's why...

After August Jobs Report, Will the Fed Raise Interest Rates?

Dow Jones futures

Will the Fed raise interest rates sooner than later due to the new job numbers? The data is set for release this Friday, Sept. 4, and the numbers are good indicators of what's to come.

Depending on how committee members view the jobs report numbers, interest rates could spike for the first time since June 2006.

Here's what you need to about to know about handling your hard-earned cash during these volatile times...

Fed Opacity is Suffocating the Markets

dow jones industrial average

Market observers continue to give short shrift to the fact that the Federal Reserve is the perpetrator of the "Red Wedding" in the markets. The Federal Reserve doesn't trust the markets. It thinks it knows better than the markets how to set the price of capital and create the conditions for economic growth.

Every once in a while, we get an errant number like the revised second quarter GDP number of +3.7% to tease us into thinking that they know what they are doing. But once we look below the headline number, we find the same weakness that has plagued the economy since the financial crisis. Years of ZIRP and QE have suffocated the economy in too much debt that will continue to smother growth for years to come.

The Fed continues to speak out of both sides of its mouth, when its best course of action would be to say nothing. On Wednesday, New York Fed President Bill Dudley sought to calm markets by saying that the case for a September rate increase was "less compelling." On Friday, Fed Vice Chair Stanley Fischer said that a September hike was still a possibility.

Peter Schiff on U.S. Dollar Crisis: "The Dollar Bubble Is Going to Burst"

Stock Market Crash

Peter Schiff, economist, best-selling author, and CEO of Euro Pacific Capital, believes a U.S. dollar crisis is underway.

"The dollar is very overvalued...and the dollar is a bubble," he told Newsmax Prime on Aug. 11. "This dollar bubble is going to burst."

Indeed, two weeks later and Schiff's prediction proved timely. The U.S. dollar index has suffered a fourth-straight loss, and U.S. markets have plummeted in the worst weekly sell-off in four years.

Many blame the surprise yuan devaluation. But Schiff believes investors should be worried about the United States, not China...

Currency Wars: China Now Has Unprecedented Control Over the U.S. Dollar

Currencies

China fired a shot heard 'round the world Aug. 11, stoking fears of what could become the ugliest of all currency wars. In a surprise move, the country massively devalued the yuan 2% - its biggest one-day devaluation in 20 years.

China's yuan devaluation will have more than just that immediate impact - it gives the country unprecedented, long-term control over the U.S. dollar.

Here's how China has managed to place the U.S. dollar on puppet strings...

How a Fed Rate Hike Will Play Out After the Yuan Devaluation

yuan

Until this week, a Fed rate hike at the September FOMC meeting seemed more probable by the day.

U.S. Federal Reserve Chairwoman Janet Yellen had hinted for months that the U.S. central bank finally was ready to raise interest rates above zero for the first time since late 2008.

Then the Chinese central bank devalued the yuan.

Here's how that bombshell will affect the Fed rate hike...

What America Would Be Like Without the Federal Reserve

what-is-the-fed-funds-rate-eagle

I have a dream. Well, I had a dream, but maybe it's never coming true, so I'll revel in my real dream.

And what a dream it was...

America had changed overnight. I didn't know what had happened, but everything was different the morning I woke up (while I was, unfortunately, still in my dream).

The sky and atmosphere were different. There was a sense of clarity, of transparency.

I had to walk into town; something told me to go there.

Wait till you see what I found...

Federal Reserve Approves Capital Surcharges for Nation's Largest Banks

dow jones futures

Yesterday (Monday), the U.S. Federal Reserve System approved a rule to require the nation's largest banks to hold a larger capital buffer.

These "capital surcharges" are in addition to the 7% capital requirements set forth in the Basel Accords in 2010.

There are two takeaways from this action....

Dow Jones Industrial Average Set to Gain on Yellen's Words

Janet Yellen testimony

Find out what's ahead for the Dow Jones Industrial Average today.

Get Dow futures, stocks to watch, the biggest stock market news, and today's best profit plays.

Continue reading here...

How the U.S. Debt Works

U.S. Debt

Policymakers need to start being more honest about how the U.S. debt works.

It's an age-old debate among the members of Congress. How do we cut the budget? How do we reduce the debt?

But that debate is being framed in the wrong way.

Here's what no one in Congress is telling you about how the U.S. debt works...

Global Markets in Self-Perpetuating Denial

Stock Market Crash

The central bank circus was on full display this week as the Federal Reserve's Open Market Committee held a two-day meeting only to emerge with another mind-numbing series of excuses for keeping interest rates at zero when the economy is not in crisis. 

One such claim was that inflation (as measured by economists) is insufficiently high, despite the fact that the price of real-world goods and services (including gasoline again) are steadily rising. The Fed stated that it's afraid raising interest rates - for the first time in nine years by all of 25 basis points - could send the economy into a tailspin. That isn't only bad policy, it is pathetic.

Perhaps it is time we learned this one vital lesson...

U.S. Dollar Value Under Attack – By the Federal Reserve

u.s. dollar value

It is a common misconception that the Federal Reserve can protect against a U.S. dollar collapse.

In fact, Fed policies actually hurt U.S. dollar value.

Take a look at these numbers and you'll see how the dollar is under fire...

The Ugly Truth Behind the Fed's Quantitative Easing

FOMC meeting minutes today

Editor's note: In this groundbreaking analysis, Shah reveals how quantitative easing - a misguided multi-trillion dollar central bank policy and the greatest financial disruptor of our time - has distorted the global economy, made many traditional investments unprofitable, and stoked wealth and income inequality. But Shah says there are steps we can take to limit some of the damage - if we act now.

The growing income and wealth gap between the rich and poor, most of whom used to be called middle class, has many fathers. But behind the scenes one primary cause emerges. It's the greatest financial disruptor of modern times: Quantitative Easing (QE).

While the jury's out on whether QE will eventually be the step-ladder that lifts us out of the lingering Great Recession, as its proponents argue, the facts demand that the verdict on QE's egregious enrichment of the rich and subjugation of everyone else is: "guilty."

And the trouble won't stop now that the United States has begun winding down its quantitative easing - the Eurozone and Japan each have massive QE programs.

Here are the facts. Policymakers and struggling middle class and poor people must take a strong stand to fight this financial plague. Here's how...