Interest Rates
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Payrolls Plummet, Odds of a Rate Cut Improve
By Jason Simpkins Associate Editor Payrolls fell for a second straight month, suggesting that a recession has taken root in the beleaguered U.S. economy and the Federal Reserve will have to take greater steps to increase liquidity and preserve growth despite rising inflationary pressures. U.S. payrolls suffered their biggest monthly decline in five years in [...] -
Fed Official Offers Assurance
From Staff Reports U.S. Federal Reserve Governor Randall Kroszner yesterday (Monday) assured investors that the central bank would take the necessary steps to protect the economy and to foster growth. "The Federal Reserve will continue to monitor developments in financial markets and act as needed to support the effective functioning of these markets and to [...]
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Eleven Ways to Profit From the Falling U.S. Dollar
By Keith Fitz-Gerald Contributing Editor Every year I talk with thousands of investors around the world and invariably the Number One question I'm getting lately is: "What's up with the dollar?" That's completely understandable. But it's actually what's "down" with the dollar that matters when it comes to setting the stage for your own global [...]
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Beware of This Fed-Led Stock Market Rally
By Keith Fitz-Gerald Contributing Editor Money Morning/The Money Map Report As a professional trader, I’m never far from my trading screens. But I find that I’ve been watching them even more intently than usual over the past few days. When I take a step back and attempt to assess just why I seem to be [...]
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Fed’s Minutes Reveal a Unanimous Decision to Slash Rates
By Jason Simpkins Staff Writer Fed policymakers – concerned the credit crunch and housing slump could take a heavy toll on economic growth – voted unanimously to cut interest rates by half a percentage point at their Sept. 18 meeting. Fed policymakers unanimously agreed to slash interest rates by one-half percentage point to 4.75 percent, [...]
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Japan's Politics Shouldn't Derail Its Economy: Profiting from the New Prime Minister
By Martin Hutchinson Director of Global Investing Research The unexpected resignation of Japanese Prime Minister Shinzo Abe on Sept. 12 spooked the Tokyo stock market. But as the dust clears, it's obvious that investors shouldn't worry. The new prime minister, Yasuo Fukuda, isn't about to change an economic policy that is currently working quite well. [...]
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High Debt Levels Leave Aussie Households 'Exposed,' Australian Reserve Bank Says
From Staff Reports Australia's ongoing economic boom – fueled by the continued growth in the Asia-Pacific Region – has left Aussie families less leery of debt, and more vulnerable to an economic shock or recession, Reserve Bank Deputy Governor Ric Battellino stated at a convention in Melbourne yesterday. At a convention organized by the 'Melbourne [...]
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Will Fed Rate Cuts Have an Inflationary Impact?
When Federal Reserve policymakers announced the half-a-point cut in interest rates last Tuesday, I was almost at a loss for words. As all of you know, I had projected reduction of 25 basis points, and by the time Tuesday’s meeting of the central bank’s Federal Open Market Committee (FOMC) rolled around, the market supported my [...]
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Dropping Housing Prices, Rising Foreclosures Could Confirm Our Worst Fears
By Jason Simpkins Staff Writer In an interview that conveyed a deep sense of economic gloom last week, former Federal Reserve Chairman Alan Greenspan told Bloomberg News that the odds of a U.S. recession remain "somewhat more" than one in three. Home prices will likely drop further, disrupting consumer spending and undermining investor confidence, Greenspan [...]
