Fed Rate Hike: Top Five Banks Could See $10B Windfall
According to an International Business Times report, if the Fed decides to raise interest rates in the near term, the top five banks in the U.S. could see a $10 billion windfall.
According to an International Business Times report, if the Fed decides to raise interest rates in the near term, the top five banks in the U.S. could see a $10 billion windfall.
Bloomberg reported that China’s central bank cut interest rates for the fifth time since November and lowered the amount of cash banks must set aside, stepping up efforts to stem the biggest stock market rout since 1996.
Bloomberg reported that tumbling stocks, oil and junk debt raise questions on the timing of a Fed rate hike. Bloomberg said that last weeks’ selloff suggests financial markets may beat the Fed to tightening ahead of the September meeting.
The Wall Street Journal reported that Federal Reserve Bank of Atlanta president Dennis Lockhart said the economy is ready for the first increase in interest rates in more than nine years.
Bloomberg reported that according to 73% of 59 economists surveyed the Fed’s long-awaited liftoff on its benchmark interest rate won’t happen until September.
The the recent slowdown in economic activity reportedly has created uncertainty inside the Fed about when to start raising interest rates, lessening the
chances of a move as early as June.
Bloomberg reported the Treasury sold $30 billion of two-year notes at the highest yield in more than three years and said, based on fed funds futures, there’s a 60% chance Fed will raise rates by July 2015.
Bloomberg reported, citing a survey of economists, that the Fed will probably raise its benchmark interest rate faster than money-market investors expect.
Bloomberg reported that Fed officials, concerned that selling bonds from their $4.3 trillion portfolio could crush the U.S. recovery, are preparing to keep their balance sheet close to record levels for years.
The Wall Street Journal reported that sharp increases in long-term interest rates, triggered by Fed statements last week, threaten sales of homes, cars and other big-ticket items that have helped drive the recovery.