Federal Reserve remains patient on future interest rate adjustments due to trade and fiscal budget negotiations.

Becky Berkman

2019-02-04 07:42:00 Mon ET

Federal Reserve remains patient on future interest rate adjustments due to global headwinds and impasses over American trade and fiscal budget negotiations. Fed Chair Jerome Powell pledges that future interest rate adjustments react to generic macroeconomic conditions.

Patience can be a key virtue. U.S. economic history suggests that the federal funds rate tends to peak in the reasonable range of 5.5%-6.5%. In comparison, several eminent economists such as former Fed Chairs Janet Yellen and Ben Bernanke suggest that we may enter a new era of persistently low interest rates. This putative scenario can be good news for debtors such as American households and federal government, the latter of which now carries about $16 trillion public debt. The same putative scenario may become bad news for most U.S. retirees who live off meager interest income on their deposits and annuities. This low-interest-rate environment can inadvertently continue to inflate asset prices. As a result, U.S. stocks soar in response to the dovish monetary policy stance with balance sheet flexibility. As the Federal Reserve keeps the key interest rate in the target range of 2.25%-2.5%, the trade-weighted average U.S. dollar index plummets to 91%. The recent greenback depreciation reflects a major reversal of U.S. credit flows in comparison to the 95% dollar peak back in January 2017.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

OECD cuts the global economic growth forecast from 3.5% to 3.3% for the current fiscal year 2019-2020.

Rose Prince

2019-03-27 11:28:00 Wednesday ET

OECD cuts the global economic growth forecast from 3.5% to 3.3% for the current fiscal year 2019-2020.

OECD cuts the global economic growth forecast from 3.5% to 3.3% for the current fiscal year 2019-2020. The global economy suffers from economic protraction

+See More

AT&T wins court approval to take over Time Warner with a trademark $85 billion bid despite the Trump prior dissent due to antitrust concerns.

Chanel Holden

2018-06-07 10:36:00 Thursday ET

AT&T wins court approval to take over Time Warner with a trademark $85 billion bid despite the Trump prior dissent due to antitrust concerns.

AT&T wins court approval to take over Time Warner with a trademark $85 billion bid despite the Trump administration prior dissent due to antitrust conce

+See More

Mitch Anthony explains why it is important for sales leaders to apply sound social skills and emotional competences to fulfill customer needs, wants, demands, desires, and other preferences.

Jonah Whanau

2025-07-12 11:35:00 Saturday ET

Mitch Anthony explains why it is important for sales leaders to apply sound social skills and emotional competences to fulfill customer needs, wants, demands, desires, and other preferences.

Mitch Anthony explains why it is now more important for top sales leaders to apply social skills and emotional competences to fulfill customer needs, wants,

+See More

Japanese prime minister Shinzo Abe outlines the main economic priorities for the G20 summit in Osaka, Japan.

Laura Hermes

2019-07-13 07:17:00 Saturday ET

Japanese prime minister Shinzo Abe outlines the main economic priorities for the G20 summit in Osaka, Japan.

Japanese prime minister Shinzo Abe outlines the main economic priorities for the G20 summit in Osaka, Japan. First, Asian countries need to forge the key Re

+See More

France and Germany are the biggest beneficiaries of Sino-U.S. trade escalation.

Chanel Holden

2019-07-11 10:48:00 Thursday ET

France and Germany are the biggest beneficiaries of Sino-U.S. trade escalation.

France and Germany are the biggest beneficiaries of Sino-U.S. trade escalation, whereas, Japan, South Korea, and Taiwan suffer from the current trade stando

+See More

Our proprietary alpha investment model outperforms most stock market indexes from 2017 to 2024.

Dan Rochefort

2024-02-04 08:28:00 Sunday ET

Our proprietary alpha investment model outperforms most stock market indexes from 2017 to 2024.

Our proprietary alpha investment model outperforms most stock market indexes from 2017 to 2024. Our proprietary alpha investment model outperforms the ma

+See More