interest rates (5)

Great read on current issues involving the Fed and its $4.6 trillion balance sheet.

Dick Bove, an equity research analyst at the Vertical Group, explains the problem with the Fed and how the Fed would be insolvent if it were judged as a private financial institution. Read more below:

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FED Reserve Prediction

Author: Connor Vargo

Editor: Vanessa Lopez

Prediction made on December 5th, 2016


     The United States Federal Reserve is planning to meet on December 13th and 14th to decide whether to raise, lower, or keep interest rates the same. Their decision will have a tremendous impact on the fate of the US economy. Lowering the interest rates could create economic growth while raising the interest rates could essentially slow it down. The Federal Reserve’s decisions will have a domino effect; whatever is

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It's been a little over a year since Switzerland became the first country in modern history to change their own interest rate into a negative one.  Since then, Sweden had joined them, but many countries have been pondering the idea. The Bank of Japan has just decided to join the two European countries with interests rates of -.75% and -.35%, respectively.  The main idea behind a negative interest rate is to essentially force the owners of the currency to spend rather and incentivize investment.


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August Jobs Report is No Indicator of Rate Hike



Large stock selloffs indicate anticipation by investors that the Federal Reserve will start raising interest rates later this month. Data from the Bureau of Labor Statistics show that the US economy added 173,000 jobs last month. This came in below expectations, although August is a month that historically comes in with lower than expected numbers. The unemployment rate dropped to 5.1%, its lowest since 2008.

These unemployment numbers may seem like good news, edging closer towards the US’s

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Investors Hop On India After Rajan Cuts Rates

Another CB interest rate cut after Swiss National Bank last week, which will probably be followed by ECB (European Central Bank) this coming week.

India has Raghuram  Rajan, former IMF Chief Economist,  as a Central Banker now.  Mr. Rajan was famous being one of the first economists who warn about the possible financial system collapse in 2005 with his NBER working paper "Has Financial development made the World Riskier?"*

Here is a nice link for India's economy at the moment.

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