Search

The article discusses the potential impact on the prices of U.S. Treasury securities of the June, 2011 conclusion of the Federal Reserve's $600 billion Treasury-purchasing program. Some believe Treasury prices could actually rise if growth in the U.S. economy slows. Others, including Bill Gross of money-management firm Pacific Investment Management Co., say bond prices will fall once the Fed's initiative ends.

The article discusses long-term expectations for inflation for the U.S. economy. The gap between yields on plain U.S. Treasury securities and inflation-adjusted ones does not suggest investors are expecting inflation to escalate sharply. This and other indicators reflect a degree of confidence among investors that the Federal Reserve will be able to contain inflation.

The article discusses a difference of opinion between two bond-fund managers on how the bond market will react to the expected end of the U.S. Federal Reserve's program of buying government securities. Bill Gross of Pacific Investment Management Co. expects prices of U.S. Treasury bonds to decline, while Rick Rieder of BlackRock believes prices will remain stable or even rise some.

The article discusses an unintended decline in the U.S. federal funds rate. The Federal Reserve adjusts this rate when it wants to affect interest rates throughout the U.S. economy. A drop from 0.13% to 0.09% over a one-week period without any intervention by the Fed, though, has raised questions about whether the Fed will be able to manipulate the rate when it feels the need to.

The article discusses skepticism about an ongoing bull market in stocks. Since March, 2009 the Dow Jones Industrial Average has risen 86% while the Standard & Poor's 500 index has gained almost 100%. However, some worry that rising oil prices, inflation, and cessation of stimulative efforts by the U.S. Federal Reserve could conspire to push stocks down.

The article reports that various market and economic indicators have regained levels not seen since investment bank Lehman Brothers failed in 2008. Stock prices have doubled since that time, and merger activity has rebounded as well. Markets are seen to have benefited from the U.S. Federal Reserve's $600 billion program to purchase U.S. government securities, and it remains unclear how they will react if that program is not extended beyond June, 2011.

The article reports that a rapid rise in yields on 10-year U.S. Treasury bonds has caused rates on 30-year mortgages to jump. By one estimate the average mortgage rate hit 5.09%, its highest level in 6 months. Yields on Treasuries have risen despite a $600 billion bond-purchasing program by the Federal Reserve aimed at pushing yields down.

The article discusses the impact of rising mortgage rates in the U.S. On December 9, 2010 the 30-year rate reached 4.61%, the highest level in several months. A spate of mortgage-refinancing activity by homeowners has likely been quelled by rising rates, which have also complicated efforts by the U.S. Federal Reserve to support the housing market.

The article reports that interest rates on U.S. government securities have risen despite initiation of a $600 billion security-purchase program by the U.S. Federal Reserve aimed at driving rates lower. Yields on government securities had fallen significantly in anticipation of the Fed's initiative, though, and despite the rise remain lower than in the spring of 2010.

The article discusses the favorable reaction to global markets to the U.S. Federal Reserve's announcement that it would buy $600 billion worth of U.S. government securities over an eight-month period. The Dow Jones Industrial Average rose almost 220 points, while stock markets in India, Japan, and China all enjoyed healthy gains.

The article discusses implications of the U.S. Federal Reserve's decision to buy $600 billion in U.S. government securities over an eight-month period. An anticipated decline in yields could prompt investors to move funds from government bonds into riskier assets including stocks. Prices in futures markets indicate investors don't expect the Fed to start raising interest rates before June, 2012.

The article discusses the waning market impact of expectations that the U.S. Federal Reserve will announce a program to purchase U.S. government bonds on November 3, 2010. Stock prices rose during the several weeks leading up to November, but have begun to decline some as published reports indicate the program might not be as large as once thought.

The article reports that the U.S. Treasury Department sold inflation-protected bonds with negative yields for the first time ever. The development suggests a belief among investors that the Federal Reserve's efforts against deflation are succeeding, and that inflation could rise in the future. If inflation doesn't materialize, bond investors could find themselves paying the government to borrow their money.

The article reports that financial markets declined on renewed fears of a slowdown in the global economy. The Dow Jones Industrial Average lost over 265 points, while Japan's Nikkei Stock Index fell 1.6%. Among investors' concerns was that the U.S. Federal Reserve's plans to buy U.S. Treasury debt reflected continued weakness in the U.S. economy.

The article discusses the impact on yields for U.S. Treasury notes of the Federal Reserve Board's decision to buy more government bonds. Yields on ten-year notes fell to lows not seen for over a year once news of the decision was released. However, some investors believe the Board's buying program won't have much additional impact, and that the main determinant of yields will be the state of the U.S. economy.

The article discusses a growing tolerance for risk among bond investors. Alternative securities that fell out of favor amid a global financial crisis, such as pay-in-kind bonds and collateralized loan obligations, are once more finding willing investors. Low interest rates maintained by the U.S. Federal Reserve have encouraged the trend.

The article reports that the U.S. Federal Reserve raised the interest rate on emergency loans it makes to banks. Both stocks and U.S. Treasury securities fell on the news. Craig Peckham of Jefferies & Co. said the move was one step in a multi-step process by the Fed to tighten up what has been an accommodative monetary policy.

The article discusses growing confidence on the part of investors that U.S. mortgage rates won't rise sharply once the Federal Reserve ends its $1.25 trillion program of buying mortgage-backed securities (MBS). Rising rates would cause MBS prices to fall. However, some investors believe buyers will materialize should the MBS market show weakness.

The article discusses investors' tepid response to interest rate cuts by the U.S. Federal Reserve. During the week of January 21, 2008 the Federal Reserve enacted the largest rate cut since 1982, yet stocks have not responded favorably. Some believe that problems facing U.S. financial markets are too big for rate cuts to deal with quickly.

The article reflects on the possible impact of a second round of quantitative easing (QE2), which was introduced by the U.S. Federal Reserve, on Treasury bonds in the U.S.

The article discusses the recovering U.S. economy. Economists expect that gross domestic product for the third quarter of 2009 increased by almost 3%, with indications that the fourth quarter was even more robust. Both Princeton University economist Alan Blinder and Paul Kasriel of Northern Trust think growth will prompt the U.S. Federal Reserve to hike interest rates sooner than some expect.

The article discusses inflation in the U.S. Although the U.S. Bureau of Labor Statistics is expected to report an increase in the consumer price index for November, 2009, the U.S. economy is not strong enough for vigorous inflation to take hold. Figures due from the Federal Reserve on capacity utilization for November will probably show use rates below levels some believe are necessary to keep prices from declining.

The article discusses the U.S. Federal Reserve's policy with respect to interest rates. Futures prices suggest investors expect the Fed will begin raising rates before September, 2010. History has shown that stock prices tend to fall about one-half year before rates rise. Given the unusual economic environment in 2009, the impact on prices of higher rates could be especially pronounced.

The article discusses renewed strength in the U.S. dollar. In December, 2009 the dollar closed below $1.48 per euro for the first time on more than 30 days. Fears that the Federal Reserve could raise interest rates sooner than expected have helped the dollar, as have crises that prompt investors to find haven in the dollar.

The article discusses the U.S. Federal Reserve's balance sheet. Purchases of Treasury bonds, mortgage-backed securities and other instruments have caused assets held by the Fed to more than double, and increased the U.S. monetary base to almost $2 trillion. Subdued demand for loans and an unwillingness among banks to lend, though, have both kept inflation in check and impeded an economic recovery.

The article discusses the U.S. housing market. Existing-home sales fell unexpectedly in August, 2009, while construction of new homes remains weak. Although a measure of impending home sales rose, high unemployment and the approaching end of a Federal Reserve program to buy mortgages could continue to put downward pressure on housing.

The article discusses the U.S. Federal Reserve's holdings of mortgage-backed securities (MBS). Totaling some $740 billion, these MBS could potentially be used to combat inflation. By selling MBS the Fed would cause interest rates to rise, thus tamping down the housing market and by extension the U.S. economy.

The article discusses prospects for a hike in interest rates from the U.S. Federal Reserve. The prices of interest-rate futures suggest traders believe the Fed could raise rates by May or August of 2010. However, futures prices have been misleading in the past. Economist Lou Crandall foresees little in the way of rate hikes until the economy has exhibited several months of strength.

The article discusses investors' reactions to policy decisions by the U.S. Federal Reserve. Treasury bonds rallied sharply in March, 2009 after the Fed said it would buy up to $300 billion of them. Stocks have risen in response to several recent Fed decisions. It is unclear what the Fed will announce at its June 24, 2009 meeting.

The article discusses inflation in the U.S. During the week of June 14, 2009, figures for May consumer-price and producer-price indexes are expected to show declines from the year-ago period. Although the data show little sign of inflation, efforts by the Federal Reserve to pump money into the economy have Treasury-bond investors expecting a long-term inflation rate of 2.5%.

The article discusses the market for U.S. Treasury bonds. Rates on bonds have risen partly due to fears of inflation. Although the Federal Reserve has been buying bonds in an effort to keep rates down, those actions could provoke inflation that pushes rates even higher. At some point rising interest rates could have a negative impact on the economy.

The article discusses the impact on the U.S. trade deficit of the Federal Reserve's accommodative monetary policies. Anticipating inflation, investors could seek a hedge in commodities that the U.S. imports such as oil, thus pushing their prices up and exacerbating the deficit. However, inflationary fears can also result in a weaker dollar that makes U.S. exports more competitive and helps to shrink the deficit.

The article discusses efforts by the U.S. Federal Reserve to support the economy. To keep mortgage rates low the Fed had purchased substantial volumes of Treasury and mortgage backed securities, as well as debt issued by Fannie Mae and Freddie Mac. Kenneth Rogoff of Harvard University observes that such interventions by the Fed are apt to continue for at least two more years.

The article discusses interest rates in the U.S. After the the rate on ten-year Treasury notes topped 3% in March, 2009, the Federal Reserve announced a program to buy Treasury bonds that drove the rate down sharply. Since then it has risen back up to 3%. If the Fed truly intends to keep the ten-year rate below that level, it may have to act again soon.

The article comments on the title of a speech to be given by U.S. Federal Reserve chairman Ben Bernanke. Entitled "Challenges Presented by Innovations in Financial Services for the Underserved," the talk hints at two factors considered central to an ongoing financial crisis, namely, large quantities of mortgage loans made to low-income (underserved) borrowers, and exotic derivatives (innovations) whose risks weren't perfectly understood.

The article discusses the gap between actual and potential economic output in the U.S. A report to be issued in April, 2009 by the U.S. Federal Reserve could show U.S. industries to be operating at less than 70% of their capacity. Along with rising unemployment, such a production gap counteracts the inflationary tendencies of ramped-up government spending.

The article discusses orders for durable goods in the U.S. A report due March 25, 2009 from the Commerce Department is expected to show that orders for durables fell for a seventh consecutive month in February. Efforts by the Federal Reserve and Treasury Department to ease credit markets could provide an impetus to durables, although perhaps not right away.

The article discusses the velocity of money in the U.S. Despite efforts by the Federal Reserve to pump liquidity into the financial system, during the final quarter of 2008 velocity fell to its lowest level since 1991, as cash accumulated in savings accounts and bank vaults. Economist Joseph LaVorgna notes that troubled assets on banks' balance sheets need to be addressed before velocity, and hence inflation, can pick up.

The article discusses options available to the U.S. Federal Reserve for invigorating the economy now that the target federal funds rate is near 0%. Although various lending programs have seen the Fed's assets approach almost $2 trillion, economist Jan Hatzius believes it needs to buy substantially more assets in the financial markets in order to prevent deflation.

The article discusses the U.S. Federal Reserve's balance sheet. Assets held by the Fed have more than doubled since March, 2007. Although the Fed has pledged to buy as much as $600 billion in assets from several institutions including Fannie Mae, only $107.1 billion have been purchased to date. A $1 trillion federal effort to promote consumer lending will increase assets held by the Fed.

The article discusses the importance to the U.S. economy of the sale of durable goods. Durables tend to be relatively expensive items whose purchase depends on the availability of credit. An October, 2008 survey of loan officers conducted by the U.S. Federal Reserve revealed tightening credit standards, though. A continuation of that trend would not bode well for the U.S. economy.

The article discusses economic conditions in the U.S. A report to be issued by the Federal Reserve on December 3, 2008 could show continued weakness in credit and labor markets. An index of leading economic indicators maintained by the Economic Cycle Research Institute (ECRI) is trending downward. Lakshman Achuthan of ECRI sees little sign of a recovery any time soon.

The article discusses the impact of a reduction in the federal-funds rate that the U.S. Federal Reserve is expected to enact on October 29, 2008. Although rate cuts can usually be expected to stimulate economic activity, within the present economic climate that can't be expected to happen until the demand for money picks up.

The article discusses actions of policy makers and the U.S. Federal Reserve that have diminished investors' confidence in markets. Officials including Alan Greenspan encouraged the use of adjustable-rate mortgages and other devices that helped create a housing bubble in the U.S. Regulators severely underestimated the shock to the financial system caused by the collapse of Lehman Brothers Holdings Inc.

The article draws parallels between the five stages of grief--denial, anger, bargaining, depression, and acceptance--and investors' reactions to government efforts at stemming an ongoing financial crises. That stocks did not rise on news that the U.S. Federal Reserve would buy commercial paper suggests investors have moved into the fourth stage.

The article discusses an alternative to a plan advocated by U.S. Federal Reserve chairman Ben Bernanke that would have the U.S. government buy distressed mortgage-backed securities from financial institutions for more than market value. A different approach would be for the government to pay market value, then receive equity stakes in the institutions in exchange for additional cash.

The article discusses developments in the U.S. economy. Falling oil prices and a strengthening dollar have helped drive down inflation. However, interest rates for various forms of consumer credit have not declined much in response to rate cuts by the U.S. Federal Reserve. Unless credit conditions improve, the U.S. could enter a recession.

The article discusses actions by the U.S. Federal Reserve that have the effect of reducing interest rates without the Fed actually having to make an explicit rate cut. By adding billions of dollars of liquidity to the banking system in an effort to mitigate the impact of Lehman Brothers Holdings Inc.'s bankruptcy, the Fed could push the federal-funds rate downward.

The article discusses the inability of U.S. federal intervention in financial crises during 2008 to calm worried investors. Although markets briefly rallied in the aftermath of the Federal Reserve's emergency rate cut in January, and the Treasury Department's intervention concerning Fannie Mae and Freddie Mac in September, in these and other instances the markets soon resumed their downward path.

The article discusses factors that could persuade the U.S. Federal Reserve to lower interest rates. The threat of inflation has abated some, due partly to falling oil prices and a strengthening U.S. dollar. An unexpectedly large increase in the unemployment rate for August, 2008 could also help inspire a rate cut.