Wall Street Journal (September 16)
“The Federal Reserve raised interest rates Wednesday for the first time in three years, a sharp reversal that began taking back cuts it made last year.” The decision to “raise the benchmark federal-funds rate range by a quarter point to between 3.75% and 4%” was unanimous and most “officials penciled in one more hike this year in interest-rate projections released after their meeting.”
Tags: 3.75%, Benchmark, Decision, Fed, Federal-funds rate, Hike, Interest rates, Projections, Quarter-point, Raise, Reversal, Unanimous
Barron’s (December 16)
“Investors betting on future interest rate moves expect the Fed to cut rates a quarter-point, ending 2024 with a federal-funds rate in the range of 4.25%-4.5%.” That not something bond investors like. They are increasingly “shunning long-term Treasuries,” with the yield on 10-year Treasuries moving beyond the “20-day moving average of 4.293% on Thursday,” before “topping 4.4% during intraday trading on Friday.”
Tags: 10-year Treasuries, 4, 4.293%, Bond investors, Fed, Federal-funds rate, Future, Interest rate, Intraday trading, Investors, Shunning, Yield
Wall Street Journal (December 16)
“Financial markets took the Federal Reserve’s interest-rate ‘liftoff’ from near-zero in stride on Wednesday, broadly celebrating the 25 basis point increase in the federal-funds rate.” Given the late timing of the rise, however, this is very much unchartered territory. “The truth is that few people in financial markets are confident that anyone knows how this gradual return to monetary normalcy will turn out.”
Tags: Basis points, Fed, Federal-funds rate, Financial markets, Increase, Interest rates, Monetary, Near-zero, Normalcy
