Tag: interest rates

Commentary: The Fed Steps On Middle America Again

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by CHQ Staff   President Trump’s pro-growth economic policies have put America back to work, and for over a year drove the stock market to new highs, boosting the personal wealth of millions of middle income Americans, then came the Federal Reserve’s inexplicable decision to raise interest rates again. Since the Fed began talking up regular interest rate hikes, the stampede by investors erased about $5 trillion in value from global stock and bond markets in October alone. Overall, the loss is estimated by some to be as much as $8 trillion. According to CNBC’s post at Thursday’s market close: The Dow Jones Industrial Average fell 440 points, bringing its two-day declines to more than 700 points and its 5-day losses to more than 1,700 points. The S&P 500 fell 1.5 percent as technology stocks underperformed. The Nasdaq Composite also fell 1.5 percent, into bear market territory amid big losses in Amazon and Apple. Companies in the S&P 500 have lost a total of $2.39 trillion in market cap this month. The Cboe Volatility Index — one of the market’s best gauges of marketplace fear — rose above 30. As our friends at NewsMax noted, it’s exceedingly rare the Federal…

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The Fed Lifts Rates for Third Time in 2018 and One More Raise Is Expected

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The Federal Reserve on Wednesday raised a key interest rate for the third time this year in response to a strong U.S. economy and signaled that it expected to maintain a pace of gradual rate hikes. The Fed lifted its short-term rate — a benchmark for many consumer and business loans — by a quarter-point to a range of 2 percent to 2.25 percent. It was the eighth hike since late 2015. The central bank stuck with its previous forecast for a fourth rate increase before year’s end and for three more hikes in 2019. The Fed dropped phrasing it had used for years that characterized its rate policy as “accommodative” by favoring low rates. In dropping that language, the central bank may be signaling its resolve to keep raising rates. Many analysts think the economy could weaken next year, in part from the effects of the trade conflicts President Donald Trump has pursued with China, Canada, Europe and other trading partners. The tariffs and countertariffs that have been imposed on imports and exports are having the effect of raising prices for some goods and supplies and potentially slowing growth. Compounding the effects of the tariffs,other factors could slow growth…

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