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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 rising mortgage rates in the U.S. During the second week of February, 2011 the fixed rate for a 30-year mortgage topped 5% for the first time since the spring of 2010. Although rising rates are an indication of gathering strength in the U.S. economy, they could also exert downward pressure on already-depressed housing prices.

The article reports that yields on 10-year U.S. Treasury bonds have risen to their highest levels since the spring of 2010, suggesting investors have become increasingly concerned about inflation. Short-term rates have remained stable, an indication that investors don't expect the U.S. Federal Reserve to take anti-inflationary measures.

The article reports that the U.S. Treasury Department is considering issuing bonds with maturities beyond 30 years. Treasury official Mary Miller dismissed the possibility of a 100-year bond, but indicated some lesser term might be possible. By extending bond maturities the U.S. could lock in currently-low interest rates for a longer period of time.

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 discusses rising yields for both U.S. government bonds and municipal bonds in the aftermath of an agreement between U.S. President Barack Obama and Congressional Republicans on tax legislation. That pact is seen as promoting economic growth and adding to the budget deficit, developments that could push interest rates higher.

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 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 reports that corporations are taking advantage of low interest rates by issuing large volumes of debt. By one estimate some $51 billion in corporate bonds were sold during a two-day period in September, 2010. Health-care company Allergan Inc. raised $650 million by selling bonds with a yield of 3.375%, the lowest rate for a U.S. corporate ten-year bond in at least 15 years.

The article discusses growing demand among investors for the 30-year U.S. Treasury bond. Contributing factors include a belief on the part of investors that interest rates will remain low due to weakness in the U.S. economy, and a desire by mortgage investors to hedge against losses stemming from increased mortgage-refinancing activity.

The article discusses a potential short-term affect on U.S. Treasury notes of China's decision to allow the yuan to appreciate gradually against the U.S. dollar. China buys large quantities of Treasury securities, but a stronger yuan means it might need to buy fewer for the purpose of managing the yuan's value against the dollar. Consequently, interest rates on U.S. Treasury securities could rise.

The article discusses a lack of factors likely to drive stock prices substantially higher. Although interest rates remain low and China has indicated it will let the yuan appreciate some, an uncertain economic recovery, cutbacks in spending by governments around the world, and a debt crisis in Europe could all act to tamp down share prices.

The article reports that Pacific Investment Management Co. (Pimco) has shifted its outlook on U.S. Treasury bonds. Previously Pimco, unlike rival firm BlackRock Inc., had expected Treasury prices to fall and interest rates to rise. Pimco has since begun purchasing Treasuries and upgraded its assessment of them from "underweight" to "neutral."

The article reports that several firms including RBC Capital Markets and Nomura Securities International have reduced their forecasts for yields on ten-year U.S. Treasury securities. Yields have fallen amid investor concerns about a debt crisis in Europe. Previously, many analysts had expected a reviving U.S. economy and growing U.S. budget deficit would cause yields to rise.

The article discusses the widely-discrepant expectations for interest rates of two well-regarded analysts. Jim Caron of Morgan Stanley predicts that the yield on the ten-year U.S. Treasury note will rise to 5.5% in 2010. Conversely, Jan Hatzius of Goldman Sachs Group Inc. is forecasting a decline to 3.25%.

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 the value of the U.S. dollar. An index that assesses the dollar against a basket of currencies has fallen 15% since March, 2009. Some believe the dollar is undervalued against the euro but too expensive with respect to the yuan. Low U.S. interest rates and high government borrowing could continue to exert downward pressure on the dollar.

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 reports on the possible negative effect of the increasing number of junk bonds being sold due to continued demand from investors and low interest rates, as of November 17, 2010.

The article explores the impact of the interest rate increase of China on its currency and inflation as of October 20, 2010.

The article discusses the U.S. Treasury Department's sale of government securities. Demand for two-year notes should be strong among banks with ample cash on hand. Auctions for ten-year notes could temporarily drive interest rates upward, before bargain hunters appear to drive them back down. Interest rates on government debt are not likely to rise until banks start making more private loans and buying fewer Treasury notes.

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 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 figures on capital movements across U.S. borders to be issued by the U.S. Treasury Department. A net outflow would suggest the possibility of higher U.S. interest rates in the future or a depreciated U.S. dollar, or both. Capital outflows coupled with a growing U.S. current account deficit indicate the dollar is likely to remain under pressure.

The article evaluates the American dollar in foreign exchange market trading. The low interest rates in the U.S. are leading financiers to pursue so-called carry trades in which they borrow dollars to purchase national currencies with higher interest rates, causing the dollar's value to fall. Should the economy recover more quickly than is forecast, the price of the dollar could rally strongly.

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 personal savings in the U.S. Although government figures are expected to show savings declined during June, 2009, low levels of household net worth relative to disposable income suggest savings will increase in the long term. Greater savings can serve to lower both interest rates and gross domestic product.

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 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 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 trade relationship between the U.S. and China. A report from the U.S. Commerce Dept. is expected to show that the U.S. trade deficit with China narrowed some in January, 2009. Although declining exports could hurt China's ability to keep U.S. interest rates low by purchasing U.S. Treasury debt, efforts to increase internal demand in China would in the long run benefit the global economy.

The article discusses the interest-rate policies of the Bank of England (BOE) and the European Central Bank (ECB). In February, 2009 the BOE is expected to reduce a key short-term interest rate to 1%, while the ECB will likely hold its analogous rate steady at 2%. However, some investors believe the ECB could cut that to 1% later in 2009.

The article discusses divergent behavior between credit and equity markets. Since mid-December, 2008 spreads between junk bonds and U.S. Treasury bonds have narrowed, suggesting that risk aversion among lenders has decreased. However, stock prices have failed to respond positively to this development. Several possible explanations are offered.

The article discusses the U.S. economy. Although initiatives such as interest-rate cuts and government bailouts and lending programs have helped stave off an economic depression, further action is needed to spur consumer spending. Efforts by consumers to reduce their debt loads, though, could counteract any such expansionary measures.

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 credit conditions in the U.S. Although LIBOR rates have fallen some, most other credit markets remain tight. The spread between Treasury and junk-bond yields is at a record, as were the corresponding spreads for the debt of Fannie Mae and Freddie Mac. The market for commercial paper continues to contract.

The article discusses contradictory indicators for inflation in the U.S. The narrow spread between U.S. Treasury notes and inflation-protected securities suggests expectations for inflation are low. Conversely, the steep yield curve among Treasury notes of different maturities indicates high expectations.

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 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.

The article notes that the U.S. monetary base--consisting of all currency and bank reserves--grew just 2.1% in July, 2008 on a year-over-year basis. Such growth is well below historical averages, and lends strength to the argument that the U.S. Federal Reserve should be in no hurry to raise interest rates.

The article discusses seemingly contradictory signals being given by the stock and bond markets. Since July 15, 2008 shares have risen in price even as spreads between corporate bonds and the 10-year U.S. have increased. Some analysts believe widening spreads reflect corporate deleveraging rather than expectations for a worsening economy.

The article discusses benefits and drawbacks to a strengthening U.S. dollar. When the dollar appreciates U.S. consumers find foreign products more affordable, and the Federal Reserve becomes less likely to raise interest rates. However, a strong dollar makes U.S. exporters less competitive in overseas markets. In addition, some believe the dollar's strength is largely a function of expectations for weak economic conditions abroad.

The article discusses the seeming ineffectiveness of rate cuts imposed by the U.S. Federal Reserve. Since September, 2007, the Fed has reduced short-term rates by a cumulative 3.25 percentage points. Yet mortgage rates are higher than they were when the rate-cutting began, as is the cost of corporate borrowing.

The article discusses challenges faced by U.S. Federal Reserve chairman Ben Bernanke. Rising oil prices, falling home prices, growing unemployment, and difficulties at Fannie Mae and Freddie Mac have all demanded his attention. Circumstances suggest that it could be difficult for him to either raise or lower interest rates any time soon.

The article discusses the U.S. dollar and, separately, Family Dollar Stores Inc. The dollar has fallen in anticipation of a hike in interest rates on July 3, 2008 by the European Central Bank. Family Dollar will unveil its quarterly earnings report on July 2, 2008. Factors that argue for and against a favorable report are discussed.

The article discusses the role of the U.S. Federal Reserve in creating financial "bubbles." Some believe the failure of the Fed to sharply raise interest rates at opportune moments has helped create bubbles first in technology stocks, then in housing and commodities. Although rising commodity prices have provoked higher inflation, the Fed indicated on June 25, 2008 it was in no rush to raise rates.

The article discusses language the U.S. Federal Reserve is likely to use in its communique about interest-rate policy to be issued June 25, 2008. Following a discussion of the U.S. economy and risks it faces, the Fed will probably use somewhat indirect terms to signal it views on future movements in interest rates.