Fed funds hike: Do old pipes really give the sweetest smoke?

On Wednesday June 14th, the Federal Reserve (Fed) has raised short-term interest rates for only the fourth time in more than 10 years (i.e., since the global financial crisis) and for the second time in 2017, stepping up the pace of tightening while inflation expectations are moving in the opposite direction that the Fed wants [...]

By |June 15th, 2017|Categories: Analyst's Insight|Tags: , |

The bond market calls for a Fed funds hike as of… March!

On Tuesday, officials of the Federal Reserve (Fed) reinforced market expectations of a rate hike from the next Federal Open Market Committee (FOMC) meeting which will take place on March 14-15. New York Fed chairman William Dudley, among the most influential central bankers, told CNN that the need for tightening monetary policy had “become a [...]

By |March 2nd, 2017|Categories: Analyst's Insight|Tags: , , , , , , |

ECB: how far will Ms. Yellen go in 2017?

On December 15, 2016, the FOMC voting members raised interest rates for the first – and last – time this year. It was the first unanimous decision since July. This 25 bps hike brings the target for the fed funds rate to a range of 0.50% to 0.75%. the American central bank said monetary policy [...]

By |December 15th, 2016|Categories: Analyst's Insight|Tags: , , , , , , |

Waiting for Godot? (The tale of the never coming rate hike)

This comes as no surprise, but the US Federal Open Market Committee (FOMC) that was meeting on Wednesday decided not to raise the Federal funds rate. The central bank’s target range for the Fed funds’ rate therefore remains at 0.25 to 0.50% as of now. Obviously, the proximity of the next American presidential elections (next [...]

By |November 3rd, 2016|Categories: Analyst's Insight|Tags: , , |

Status quo of the Fed: Was it a real “close call”?

At their September 20-21 meeting, FOMC members voted 7-3 to leave interest rates unchanged. This lack of unanimity raises the question of dissensions within the Fed. Minutes released Wednesday showed that some of those who voted the status quo indicated that the decision was a “close call”. Some of those also highlighted that it would [...]

By |October 14th, 2016|Categories: Analyst's Insight|Tags: , , , |