Articles about “Federal Reserve”
Fed rate cut – A Christmas present
As expected, the US Federal Reserve has lowered its key interest rate once again. This is a positive step for the markets. But how will the Fed continue with its interest rate policy in the new year?
Federal Reserve cuts US key interest rate
As expected, the US Federal Reserve lowered the key interest rate by 0.25 percentage points yesterday. Chief economist Gerhard Winzer analyzes the interest rate decision and statements by Federal Reserve Chairman Jerome Powell.
Central banks at odds: How are Fed and ECB reacting to the trade conflict?
Trump’s customs policy and the trade conflict also pose new challenges for central banks. However, while the ECB has room to cut interest rates in order to support the economy, the Fed must exercise caution in the USA. Higher tariffs also threaten to push up inflation again.
However, US President Donald Trump does not like the Fed’s course at all. His attacks on Fed Chairman Jerome Powell are fuelling concerns about the central bank’s independence. Even though Trump has recently backed down slightly, his comments are once again unsettling the markets.
Inflation continues to fall: Do interest rate hikes now come to an end?
Inflation in the Eurozone is expected to fall further. According to initial estimates, the inflation rate fell more sharply than expected in August. With a view to the next ECB interest rate decision at the end of October, the question now arises: Do interest rate hikes now come to an end?
Central banks weigh risks
Most recently, central banks have signaled a somewhat less sharpish stance, as an effect of the rapid key rate hikes on the monetary environment has already become visible. However, recent economic data are dampening hopes for a rapid decline in inflation, as Chief Economist Gerhard Winzer explains in his market commentary.
Damage makes wise – Herd panic and the lessons learned
Last weekend, for the third time in two months, a US bank found itself in turmoil. After Signature Bank and Silicon Valley Bank (SVB) slid into crisis in March after customers withdrew billions in funds, First Republic Bank has now been hit. A look at the history books shows that banking crises and bank runs have happened time and again. However, the lessons learned from them helped to make the banking system more robust and stable.
Robust economy despite recent turbulences
Despite the recent turmoil in the banking sector, both companies and the global economy are currently proving to be extremely robust. Read more about the current market environment in the commentary by Gerald Stadlbauer, Head of Discretionary Portfolio Management at Erste AM.
Silicon Valley Bank – Impact on the Stock Markets
The turbulences surrounding the US Silicon Valley Bank (SVB) are currently keeping the markets busy. After the bank was closed last Friday, a comprehensive package of measures followed over the weekend to avoid possible consequences. In this blog post, the experts of our Investment Division explain what exactly happened and how they assess the situation.
The Good, the Bad and the Hawk
Last week brought good, bad and inflation-fighting news, all from the US. At the start of the new trading week, the focus is on the turbulence surrounding Silicon Valley Bank.
Rapid and synchronous key rate hikes
Central banks are responding to high inflation by raising key interest rates. Further key rate hikes are likely this week as well.
Monetary tightening even as growth slows further?
Last week, three major central banks have raised their key interest rates further. By nature, however, it is not easy to find the right key interest rate level – especially in the current environment.
Very tight labor market in the USA
Many economic indicators point to weakening economic momentum. Meanwhile, the US labor market continues to be very robust, which recently mitigated the immediate risks of recession in the United States.
Recession Risks
Ahead of the upcoming interest rate decision by the Federal Reserve, a number of economic indicators point to increasing risks of growth or recession. There are also uncertainties regarding the further development of inflation and the effectiveness of monetary policy measures.
The End of Loose Monetary Policy
The US Federal Reserve is turning the interest rate screw hard and accelerating the exit from its ultra-expansive monetary policy. Will it get a grip on high inflation? And how will the economy cope with higher interest rates?
How are stock markets currently reacting to increases in yields?
Central bank targets for inflation may be met earlier than expected in some countries. This environment has led to an increase in government bond yields. We explain how it came about.
Coronavirus: US rate cut and now what?
The corona virus leaves traces in financial market policy. The US Federal Reserve cut interest rates surprisingly early on Tuesday. Erste AM chief economist Gerhard Winzer explains this measure in our interview.
Bargains, sales and dividends: Hopeful signs for US retail investors
Thanksgiving, Black Friday and Cyber Monday are considered to be the weeks with the highest retail sales. How can investors benefit from the US Christmas business?
Earnings Season: US stock markets climb to record levels after unexpectedly good figures
A US stock exchange peaked in the reporting season last week. In any case the first quarter was already doing exceptionally well. Whether and how long this pace can be maintained is questionable. Will the current phase on the US stock exchanges soon be nearing its end?
Mixed feelings on the US stock exchanges
After a good start to the US reporting season, the tide on the US stock exchanges turned last week. Find out more in our new blog.