Bloomberg (October 7)
“The ‘no landing’ scenario–a situation where the US economy keeps growing, inflation reignites and the Federal Reserve has little room to cut interest rates–had largely disappeared as a bond-market talking point in recent months.” After “setting up for slowing growth,” traders are undergoing another “wrenching recalibration” on the heels of a “blowout” jobs report “showing the fastest job growth in six months, a surprising drop in US unemployment and higher wages.” Treasury yields surged and investors are “furiously reversing course on bets for a larger-than-normal half-point interest-rate reduction.”
Tags: Blowout, Bond market, Economy, Fed, Growing, Inflation, Interest rates, Jobs, No landing, Recalibration, Scenario, Traders, Treasury yields, U.S., Unemployment, Wages
The Economist (September 18)
“The Federal Reserve’s decision to lower interest rates by half a percentage point, announced on September 18th, is momentous for two reasons. As the first cut by America’s central bank since it lifted rates to quell inflation, it marks the start of a monetary-easing cycle. It also represents a bet by the Fed that inflation will soon be yesterday’s problem and that action is needed to support the labour market.”
Tags: Action, Fed, Inflation, Interest rates, Labour market, Momentous, Monetary-easing cycle, U.S.
Financial Times (September 10)
“Central bankers on both shores of the Atlantic are under pressure from many sides — political circles, financial markets, public opinion — to cut interest rates.” But the European Central Bank (ECB) faces distinctly different circumstances than the Fed or BoE. The ECB has already cut rates to 3.75 per cent, which “is already a solid 1.5 percentage points below” the Fed’s rate and inflation is less controlled. “The ECB has no room to cut rates.” It should “maintain a moderately restrictive stance on monetary policy to make further progress on inflation.”
Tags: 3.75%, BOE, Central bankers, ECB, Fed, Financial markets, Inflation, Interest rates, Monetary policy, Political, Pressure, Public opinion, Restrictive
Reuters (September 5)
“Global property markets, rattled by the steepest rise in interest rates in a generation, will get little relief from the gradual easing of borrowing costs, with scant hope of a return to the free money that fuelled a boom.”
Tags: Boom, Borrowing costs, Free money, Global, Gradual easing, Interest rates, Property markets, Rattled, Relief, Rise, Scant hope, Steepest
Financial Times (August 23)
“Closely watched gauges of long-term inflation expectations in Europe have reached their lowest levels for almost two years, in a sign that investors think central banks can keep lowering interest rates without risking a flare-up in price pressures.” Concerns are also easing in the U.S., with “markets pricing the average long-term inflation rate at 2.4 per cent, down from 2.6 per cent in July.”
Tags: Central banks, Concerns, Easing, Europe, Expectations, Flare up, Inflation, Interest rates, Investors, Price pressures, Risking, U.S.
Wall Street Journal (July 29)
The “post-covid factory boom Is running out of steam,” leaving U.S. manufacturers to rethink “their plans as they brace for an extended slump in demand.” Compounding factors include “higher interest rates, rising operating costs, a strengthening U.S. dollar and lower selling prices for commodities” as more executives forecast “challenging business conditions for the remainder of the year.”
Tags: Commodities, Demand, Dollar, Executives, Extended slump, Factory boom, Interest rates, Manufacturers, Operating costs, Plans, Post-Covid, Rethink, U.S.
Wall Street Journal (July 17)
“A clearer outlook on interest rates is giving bankers hope that dealmaking is emerging from a two-year slowdown.” Though up about 8% from a year ago, Q2 global M&A volumes “are still below those of the deal boom coming out of the pandemic,” with M&A activity “unlikely to kick into full gear until interest rates come down.”
Tags: 8%, Bankers, Boom, Clearer, Dealmaking, Emerging, Interest rates, M&A, Outlook, Pandemic, Q2, Slowdown
Bloomberg (July 13)
“Bond traders are ramping up bets that the Federal Reserve will cut interest rates by half a percentage point in September instead of the standard quarter-point increment.”
Tags: 50 bp, Bets, Bond traders, Cut, Federal Reserve, Interest rates, Ramping up, September, Standard
New York Times (July 9)
“The environment for building renewable energy projects has become much tougher since the coronavirus pandemic. According to industry estimates, the costs of developing an offshore wind farm — large ones run to billions of dollars — have risen 40 percent in recent years because of higher material and labor costs and interest rates.”
Tags: 0%, 4%, Building, Coronavirus pandemic, Costs, Developing, Environment, Interest rates, Labor, Material, Offshore, Renewable energy, Tougher, Wind farm
New York Times (June 6)
Office building losses are starting to “pile up, and more pain is expected.” The culprits? Weak demand for office space and interest rates and other costs that are higher than in many years. “The repercussions could extend far beyond the owners of these buildings and their lenders. A sustained drop in the value of commercial real estate could sap property tax revenue” that cities depend on and “hurt restaurants and other businesses that served the companies and workers who occupied those spaces.”
Tags: Cities, Costs, CRE, Culprits, Interest rates, Lenders, Losses, Office building, Office space, Owners, Pain, Pile up, Property tax, Repercussions, Restaurants, Weak demand