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By Kenneth N. Gilpin and Kenneth N. Gilpin,New York Times News Service | January 8, 1992
NEW YORK -- A torrent of new corporate debt securities flooded the credit markets yesterday as companies began to react to the drop in interest rates since Dec. 20.Analysts and investment bankers have been expecting a surge ever since the Federal Reserve Board cut its discount rate by a full percentage point, to 3 1/2 percent, and lowered its target on the overnight federal funds rate by half a point, to 4 percent.Those rate cuts have prompted rates in the secondary market for Treasury securities, the benchmarks used for pricing corporate issues, to fall by more than one-quarter of a percentage point, or 25 basis points, over the last few weeks.
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NEWS
June 21, 2010
When the Federal Reserve Open Market Committee meets Wednesday, no one expects it to raise the federal funds rate — the overnight bank rate that now hovers below 0.25 percent. However, businesses, politicians and prognosticators are eager, perhaps inappropriately so, to hear clues about when it will begin raising short-term interest rates to a more normal level. Yet, Fed policy is much less relevant to U.S. growth and price stability than in the days of Paul Volcker, because China's yuan policy has substantially limited the importance of Fed interest rate decisions by severing the historic link between short interest rates — like the federal funds rate it targets — and long rates on mortgages, corporate bonds and the securities banks use to finance lending on cars and credit cards.
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BUSINESS
By Bloomberg Business News | May 25, 1993
NEW YORK -- The dollar rallied against most major currencies, hitting a two-month high against the German mark amid signs that inflation concerns could prompt the Federal Reserve to raise interest rates soon.The dollar took off after the Wall Street Journal reported that Fed officials voted to lean toward raising short-term interest rates when they met last week. The Fed doesn't release the minutes of its regular Federal Open Market Committee meetings until six weeks after they take place.
BUSINESS
By Don Lee and Don Lee,Tribune Newspapers | January 28, 2010
WASHINGTON - -Amid the political rancor over Federal Reserve Chairman Ben S. Bernanke's bid for a second term, central bank officials encountered some dissension in their first policy-setting meeting of the year, even as they affirmed their pledge to keep interest rates at near-zero for "an extended period." For the first time in a year, the Fed's monetary policy committee's statement, issued at the conclusion of its two-day meeting Wednesday, came with a dissenting vote. Thomas M. Hoenig, president of the Federal Reserve Bank in Kansas City, voted against the policy action, indicating that economic and financial conditions had improved enough that the statement to maintain the benchmark short-term rate for an extended period was unwarranted.
BUSINESS
By Jay Hancock | February 4, 1996
FACED WITH new evidence of sluggish economic growth across the country, the Federal Reserve last week cut short-term interest rates. It lowered the federal funds rate, which banks charge each other for overnight loans, from 5.5 percent to 5.25 percent. It also cut the more-symbolic discount rate, charged to banks borrowing directly from the Fed, from 5.25 percent to 5.0 percent.Many analysts expect more reductions, but they caution that the quality of recent economic data may have been hurt by the federal government's shutdown.
BUSINESS
By Thomas Easton and Thomas Easton,New York Bureau | April 10, 1992
NEW YORK -- Against a backdrop of a suspect recovery, the Federal Reserve Board drove a key interest rate down yesterday to levels not witnessed since the mid-1960s.The reduction in the federal funds rate, used for loans between banks, to 3.75 percent from 4 percent was endorsed by the financial markets: Stock and bond prices rallied.The Dow Jones industrial average, down nearly 100 points earlier this week, bounced back with a 43.61 rise yesterday, closing at 3,224.96. Yields on the bellwether 30-year Treasury bond fell to 7.86 percent from 7.91 as prices rose about one-half percent.
BUSINESS
By Chicago Tribune | January 14, 1991
Uncertainty is the watchword this week, as the Middle East and the lackluster state of the economy dominate the attention of those who buy and sell the nation's assets. With those anxieties in the forefront, inflation has taken a back seat. But Wednesday marks the day the nation learns the pace of consumer inflation for December, as well as the full-year rate for 1990. It is likely to have been the worst year for price runups since 1981, when inflation was 8.9 percent. Most analysts are expecting the price rise for 1990 to be somewhere around 6 percent, even if the December figure shows a small drop.
BUSINESS
By Bloomberg Business News | April 24, 1994
WASHINGTON -- The United States could hear some criticism today from other major industrialized nations for the recent rise in interest rates.Though the Clinton administration can point to success in boosting domestic growth, finance ministers and central bankers from the Group of Seven industrialized nations, gathering here today for one of their regular meetings to discuss the world economy, may express concern about the U.S. interest rate explosion.The...
BUSINESS
By Bill Atkinson and Bill Atkinson,SUN STAFF | December 21, 1995
Scores of banks across the country yesterday lowered the prime lending rate a quarter of a point, following the Federal Reserve's move on Tuesday to cut short-term interest rates.First Maryland Bancorp, Provident Bankshares Corp., NationsBank Corp. and Signet Banking Corp. were among area banks to trim the prime rate to 8.5 percent from 8.75 percent.The prime rate is a benchmark that banks use to set interest rates on business and some consumer loans. Its reduction could mean lower interest rates for business and consumer loans, including auto loans and some credit cards, said Christine Chmura, chief economist with Richmond-based Crestar Bank.
NEWS
June 21, 2010
When the Federal Reserve Open Market Committee meets Wednesday, no one expects it to raise the federal funds rate — the overnight bank rate that now hovers below 0.25 percent. However, businesses, politicians and prognosticators are eager, perhaps inappropriately so, to hear clues about when it will begin raising short-term interest rates to a more normal level. Yet, Fed policy is much less relevant to U.S. growth and price stability than in the days of Paul Volcker, because China's yuan policy has substantially limited the importance of Fed interest rate decisions by severing the historic link between short interest rates — like the federal funds rate it targets — and long rates on mortgages, corporate bonds and the securities banks use to finance lending on cars and credit cards.
BUSINESS
By William Neikirk | November 1, 2007
WASHINGTON -- The Federal Reserve staged another pre-emptive strike against a potential economic slowdown yesterday, cutting short-term interest rates by a quarter percentage point to the lowest level in almost two years. After a half-percentage-point cut in September, the central bank continued its attack against the prospect of more economic damage from a severe housing correction that has put financial markets in turmoil, largely because of a surfeit of subprime mortgages to marginally qualified borrowers.
BUSINESS
By Laura Smitherman and Laura Smitherman,Sun reporter | October 7, 2007
Watching the stock market rally that pushed the Dow Jones industrial average to a new high last week, it's hard to believe that August marked a time of profound financial turmoil in the housing sector, one of the nation's bedrock industries. For mutual fund investors, the third-quarter roller-coaster ride that ended on an upswing meant stock funds eked out an average 2 percent gain and bond funds advanced 1.4 percent on average from July through September, according to Lipper Inc. Funds betting on large, fast-growing companies rose 6.2 percent during the quarter, while funds investing in China shot up 29 percent.
BUSINESS
By Maura Reynolds and Walter Hamilton and Maura Reynolds and Walter Hamilton,Los Angeles Times | October 6, 2007
WASHINGTON -- Recession fears receded yesterday after the government said job growth in August and September was better than economists expected. But the sunny employment report could also dim prospects for more interest-rate cuts this year. Payrolls expanded by 110,000 jobs in September, the Department of Labor said, slightly ahead of estimates. The unemployment rate, meanwhile, edged up to 4.7 percent, from 4.6 percent in August. Wall Street cheered the news, with the blue-chip Standard & Poor's 500 index closing at a record high.
BUSINESS
By Andrew Leckey and Andrew Leckey,Tribune Media Services | April 8, 2007
Cool as a cucumber. That's how Federal Reserve Chairman Ben S. Bernanke comports himself. Yet the nuance in his words can quickly be transformed to fire or ice when heard by nervous investors around the globe. His acknowledgment that U.S. economic weakness could cause the Fed to consider lowering rates is capable of propelling markets to greater heights. The risk of inflation, on the other hand, with Bernanke thinking out loud about how it is still more likely that rates will be raised, can traumatize the markets.
BUSINESS
By JAY HANCOCK | January 1, 2006
For the author of the Book of Revelation, trouble is four horsemen, a black sun and a bloody moon. For Nostradamus, it's a May earthquake and Saturn in the house of Capricorn. For Wall Street, it's the yield on the two-year Treasury bill exceeding the yield of the 10-year Treasury note. Say your prayers and look out below: The "inversion" is here. Or at least it was last week, when short-term interest rates surpassed long-term rates and people searched the skies for a recession, sending the Dow Jones industrial average down 165 points.
NEWS
By William Neikirk and William Neikirk,CHICAGO TRIBUNE | August 11, 2004
WASHINGTON - The Federal Reserve stood its ground yesterday and raised interest rates modestly for the second time this summer, despite signs of a weaker job market and slower economic growth. The central bank coupled its interest-rate increase with a sunny outlook, saying the economy is poised to shake off its sluggishness and resume "a stronger pace of expansion going forward," reassuring words that helped boost the stock market. Wall Street responded with enthusiasm. The Dow Jones industrial average rose 130.01 points to close at 9,944.
NEWS
By William Patalon III and William Patalon III,SUN STAFF | August 25, 1999
Federal Reserve policy-makers nudged interest rates up a quarter-point yesterday, a move that surprised virtually no one and that many economists believe will allow America's good fortunes to keep rolling. By increasing rates for the second time in eight weeks, the central bank hopes to keep inflation benign and avoid a credit-tightening severe enough to end the U.S. economic party. "People think higher interest rates are bad," said Carl Tannenbaum, chief economist for ABN Amro in Chicago.
BUSINESS
By Los Angeles Times | May 10, 1994
WASHINGTON -- Senior Federal Reserve officials confirmed yesterday that the central bank is poised to raise interest rates repeatedly in the months ahead, with some policy-makers embracing a controversial formula that could prompt them to call for rate increases whenever national unemployment falls below 6.5 percent.Now that the recovery is picking up speed and the economy is generating hundreds of thousands of new jobs each month, Fed officials say they are convinced that short-term interest rates must go considerably higher to prevent inflationary pressures from building.
NEWS
June 30, 2004
SHORT-TERM interest rates have been luxuriating at a 46-year low. The Federal Reserve hasn't raised its overnight loan rate in four years. With an anticipated Fed announcement today of an increase in that central-bank benchmark, the American economy appears to be crossing a historic threshold. A remarkable era of easy credit may be ending, as the economy, inflation and consumer expectations heat up. (Bought gas or groceries lately?) Some analysts say it could be another generation before we pass this way again, if ever.
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