Already a subscriber?To a large and under-appreciated extent, the job of the US Federal Reserve entails chasing an elusive number: r*, or the neutral short-term interest rate.
First, the impact of short-term rates depends on other financial phenomena such as long-term rates, stock prices and credit spreads – all of which vary considerably on their own. Third, there’s always a lot going in the economy other than monetary policy. Such as, right now, a wave of investment in artificial intelligence.
One measure of underlying demand – real final sales to private domestic purchasers – rose 3.1 per cent. The Atlanta Fed’s GDPNow model forecasts 3.5 per cent growth in the second quarter.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Interest rates: RBNZ considered raising interest rates, wrong-footing marketNew Zealand’s central bank kept the cash rate steady at a 15-year high of 5.5 per cent as expected on Wednesday, but surprised the market by pushing out the likely timing of some rate relief.
Source: FinancialReview - 🏆 2. / 90 Read more »
Voters unexcited about federal budget and fear it will stoke interest rates riseA new poll shows Australians are largely unmoved by the federal budget, and it has failed to give the Albanese government a bump in support.
Source: 9NewsAUS - 🏆 10. / 72 Read more »
RBA holds interest rates steady ahead of federal budgetBut the bank did not rule out further increases as it warned that high petrol prices and a tight jobs market would push inflation higher in the coming months.
Source: smh - 🏆 6. / 80 Read more »
RBA holds interest rates steady ahead of federal budgetBut the bank did not rule out further increases as it warned that high petrol prices and a tight jobs market would push inflation higher in the coming months.
Source: theage - 🏆 8. / 77 Read more »
RBA holds interest rates steady ahead of federal budgetBut the bank did not rule out further increases as it warned that high petrol prices and a tight jobs market would push inflation higher in the coming months.
Source: brisbanetimes - 🏆 13. / 67 Read more »
Interest rates expected to remain on hold ahead of federal budgetInterest rates are likely to stay on hold, though higher-than-expected inflation may have the Reserve Bank board on high alert at the May meeting.
Source: SBSNews - 🏆 3. / 89 Read more »