In addition, the Federal Reserve's third successive interest rate cut on March 21 yielded disappointing results. Even if the rate cut does have a longer-term effect, a recent analysis suggests that big stocks and large-cap growth funds -- the primary drivers of market growth in recent years -- may continue...
The Federal Reserve's 3/4-point rate cut did little to sway the mind of Wall Street -- all despite the fact that it was the largest cut in the funds rate since August, 1984. MSNBC thinks the answer is in the housing market. The uncertainty surrounding the housing sector has...
"What are the economic effects of an interest rate cut when an economy is in the midst of a financial crisis? Under what conditions will a cut stimulate output and employment, and raise welfare? Under what conditions will a cut have the opposite effects? The answer to these questions is...
Kathy Lien submits: No, the Federal Reserve did not cut interest, but one central bank did - the RBNZ, which is short for the Reserve Bank of New Zealand. For the first time in 5 years, the Reserve Bank of New Zealand cut interest rates by 25bp...
Dr. Duru submits: "Fool me once, shame on you. Fool me twice, shame on me." Fool me thrice, and I must really be asking for it. In January, the S&P 500 put in a climactic bottom with the VIX spiking to 37.57. The Federal Reserve stepped in with...
It's mayhem on Wall Street. Yesterday the Dow Jones fell 3oo points before a late rally nearly erased the day's loses. Today the Fed announced a surprise cut of .5% in the discount rate on loans to banks. Stocks opened strong but then sank again to pare gains by half,...
Yesterday the Federal Reserve announced it would leave overnight interest rates at 5.25% despite recent volatility in the financial markets and concerns over the tightening of credit. The Real Time Economics blog from the Wall Street Journal offers a round-up of expert commentary on the decision. ...
New employment numbers are out from the Labor Department today, and it's not good news. The economy lost 4,000 jobs in August -- that's the first loss in four years and significantly worse than economists expected. The unemployment rate is steady at 4.6%. The markets are a different matter, however,...
The optimism prompted by the recent Fed rate cut gave an immediate boost to less speculative investments. Both junk bonds and initial public offerings slowed to a trickle late last year, cramping the ability of many new or otherwise struggling firms to raise money. Not surprisingly, the bulk of this...
In June, the US bond market began to collapse after a smaller than expected 25bp-interest rate cut by the FOMC. This sell off gathered steam on July 15th, following Federal Reserve Chairman Alan Greenspan's semi-annual speech to Congress forecasting a pick up in economic growth and essentially announcing that the...
By Sumeet Desai and Matt Falloon LONDON (Reuters UK) - One Bank of England policymaker wanted to raise interest rates this month and another wanted a cut, but the remaining seven chose to keep them steady as both inflation and economic growth prospects had worsened. Minutes...
Australian lending finance has posted its biggest annual fall in 16 years as slumping consumer sentiment wards off business borrowing.Total lending finance - which includes personal, housing, commercial and lease borrowing - slumped by a seasonally adjusted 13.3 per cent in the year to May, the Australian Bureau of...
The bill repeals the foreign sales corporation/extra-territorial income program - ruled an illegal export subsidy by the World Trade Organization WTO. Under the WTO ruling, the European Union EU implemented sanctions in March (currently at 8 percent) against a range of U.S. products, including U.S. - made apparel, textile and...
Perhaps you've been hearing a bit about Alan Greenspan's new book lately? The former Fed Chairman has been out flogging his memoir, "The Age of Turbulence: Adventures in a New World," and from the media reaction we think sales should be alright. Greenspan was on 60 Minutes last night and...
Soaring food and petrol prices pushed annual inflation up to four per cent in the June year after the Consumer Price Index CPI leapt a higher than expected 1.6 per cent in the June quarter, Statistics New Zealand says.The department reported food prices rose 8.2 percent in the June...
The news is rife with reports of faltering liquidity, anemic investment, and general feeling of doom-and-gloom -- despite an expected rate cut by the Fed. In developing countries, this could be good news; such countries can use their sovereign wealth for bargain purchases. So far, that's what's been happening. Investment...
The biggest monthly fall in the number of home loans approvals in eight years suggests the Reserve Bank of Australia RBA may be succeeding in its bid to slow the economy and push inflation down.Finance approvals for owner-occupied housing declined for the fourth straight month in May, down 7.9...
How wide and how severe will the fall out from this summer's sub-prime meltdown be? That's the question occupying a great many minds in the financial world. They've got a lot of numbers to crunch, from the rise in new jobs in September, to the markets' big rally on Monday,...
For business strategists and business owners trying to handicap the chance of a recession in the U.S., news earlier this week has been encouraging. Triple-digit stock market gains, dropping oil prices, decent Black Friday sales, and and hints of another interest rate cut by the Fed has somewhat lightened the...
By Alister Bull WASHINGTON (Reuters) - The Federal Reserve must "react decisively" to stop inflation from pushing up wages, one of its top policy-makers said on Tuesday, dropping a clear hint about the possibility of interest-rate hikes ahead. "Let me emphasize that I'm...
