Big banks around the world are secretly rooting for another U.S. Federal Reserve interest rate hike this week.
That's because every Federal Reserve interest rate hike causes an immediate spike in their income. Last year the U.S. Federal Reserve paid out $6.9 billion to the Big Banks, including more than $100 million to Goldman Sachs Group Inc. (NYSE: GS) and more than $900 million to JPMorgan Chase & Co. (NYSE: JPM).
Here's how this insanity started - and why it's bound to get worse...
Big banks around the world are secretly rooting for another U.S. Federal Reserve interest rate hike this week.
That's because every Federal Reserve interest rate hike causes an immediate spike in their income. Last year the U.S. Federal Reserve paid out $6.9 billion to the Big Banks, including more than $100 million to Goldman Sachs Group Inc. (NYSE: GS) and more than $900 million to JPMorgan Chase & Co. (NYSE: JPM).
Here's how this insanity started - and why it's bound to get worse...
At a meeting with Congress on Wednesday, U.S. Federal Reserve Chairwoman Janet Yellen reiterated the Fed's plan to raise interest rates in the months ahead.
But her words also showed a hint of doubt.
Yellen discussed several concerns about the economy that could make the Federal Reserve hesitate on the timing of rate hikes. She also reemphasized the Fed's willingness to experiment with controversial monetary policy tools, including negative interest rates.
The U.S. Federal Reserve meeting concluded today with a statement release at 2 p.m.
In its first monetary policy decision of 2016, the U.S. central bank left interest unchanged at 0.25% to 0.50%. That decision was widely expected from analysts and investors.
Here's what you need to do now to protect your investments....
The U.S. Federal Reserve kicked off its two-day policy meeting Tuesday, and investors are looking for any sign of the next Fed interest rate hike.
The overwhelming consensus now is that we won't see a Fed interest rate hike at the conclusion of the U.S. central bank's meeting on Wednesday.
But that doesn't mean we won't see another Fed rate hike sometime in 2016...
The Fed interest rate hike in December was the first rate increase for the U.S. Federal Reserve in nearly a decade. But now the focus has shifted to whether another Fed interest rate hike is coming in 2016.
Projections from policymakers show they will continue to raise their target range by a full percentage point during 2016. That would leave rates at a range of 1.25% to 1.5%.
But not everyone predicts such a smooth series of rate hikes from the Fed...
After the first Fed interest rate hike on Dec. 16 (Wednesday), investors are anxious to know when the next rate hike will be.
Wednesday's quarter-percentage point (0.25%) Fed interest rate hike was the first since June 2006. The Fed's vote to raise rates was unanimous, signaling its increased confidence in the U.S. economy.
Future rate hikes in 2016 will be based on these factors...
If the December Fed rate hike of 0.25% marks the beginning of a period of tightening, the U.S. taxpayer is about to get a very unwelcome surprise.
Now that the U.S. Federal Reserve is raising interest rates, it won't be so easy to hide the dire consequences of years of loose money policies - especially all the quantitative easing (QE).
Here's why the Fed's balance sheet is suddenly a very big problem for America...
This week, the U.S. Federal Reserve is the most powerful market-moving group on the planet. Pretty scary.
For months everyone's been certain the Fed would raise rates in December. But frankly, it doesn't matter one whit whether it does so or not.
And after the market action Friday, all bets are off. Here's why...
Many financial analysts and economists think the Fed will raise interest rates at its December meeting. It would be the first rate hike since June 2006.
For a rate hike to happen, the Fed must determine the economy has improved enough since the Great Recession. And the data the Fed pays attention to most show the economy has.
Here's what you need to know...
With a Fed rate hike all but certain when the Federal Open Market Committee (FOMC) meets Dec. 15-16, Americans need to start thinking about how it will affect them.
Just about every interest rate keys off the Fed interest rate in one way or another. That includes many interest rates that have an impact on consumers.
Here's what you can expect when the Fed raises rates...
Six U.S. Federal Reserve officials, including Chairwoman Janet Yellen, will give speeches today on monetary policy.
Investors will anxiously listen for clues on whether policymakers will raise the Fed interest rate at next month's FOMC meeting.
Here are two reasons why it's inevitable...
When the Fed rate hike that nearly everyone expects finally happens, a lot of U.S. companies that have been surviving on cheap debt will get pushed into oblivion.
But a Fed interest rate hike will raise the cost of that borrowing putting these "zombie" companies at risk.
Here's what the first Fed rate hike since 2006 will do to these debt-dependent companies...
We know a Fed rate hike is coming soon.
What we don't know is how the hike will impact U.S. markets. Will the move rock traders, or will it be "business as usual"?
You might think the U.S. dollar is going to crash. That makes sense as the value of paper currencies continues to be destroyed by central banks trying to reduce their debt.
But the dollar's been getting stronger since 2014. And if it moves up through its next resistance level, it would rock financial markets.
Let me show you how to get this right. Because everything depends on what happens to the dollar.
