The U.S. Federal Reserve is widely expected to announce its first rate hike in almost a decade at the upcoming meeting of the Federal Open Market Committee in December.
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In response to a letter from Nader decrying the plight of savers who are suffering from years of exceptionally low interest rates, Yellen noted that Americans would have been worse off if the Fed had not taken drastic action to counter the severe financial crisis in 2007 and 2008 and the ensuing recession.
The dollar eased from a 8-month peak against a basket of currencies on Tuesday, falling against the yen and the Swiss franc as a rise in tension between Russian Federation and Turkey spurred inflows into traditional safe haven currencies.
In its November meeting minutes released last week, the United States central bank hinted, in its strongest language yet, that it is prepared to hike rates next month. He said he had not changed his view that the central bank needs to start raising rates. But given the Fed only meets every six weeks, it still implies a rate hike every other meeting. [ECILT/GB] “We have been conditioned to believe that the BoE will raise rates at a modest pace once the tightening cycle begins”, said Peter Dixon at Commerzbank.
Market expectations were also fueled by minutes from the Federal Reserve on Wednesday that showed its policymakers are satisfied the USA economy is strong enough to withstand a rate hike next month. The USA job market is showing good improvement and inflation is heading towards the annual target of two percent. Is the case for a rate hike, or not, really dependent on one report?
Materials shares were hurt by the slide, with global miner BHP Billiton dropping 2.1 percent in Sydney and Chinese energy giant Sinopec losing nearly 1 percent in Hong Kong. “Even in an environment with quite a benign growth profile, we are expecting another interest rate increase in March 2016”.
Mounting support for a higher discount rate may signal growing support within the Fed system for raising the central bank’s primary policy interest rate, the federal-funds rate, as well. “The unintended consequences of having low interest rates for this long is that it has created capital allocation distortions”.
A holiday-shortened week offers a slew of U.S. economic data, including the latest estimate for third-quarter GDP, as investors try to gauge if these qualify for what San Francisco Fed president John Williams called “a strong case” for a December rate hike.
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With that in mind, here are five big bank stocks to sell, or for the more aggressive, to consider as short-side or put option candidates. Glenn P Schorr, an analyst at Evercore ISI maintains a Buy rating and a price target of $62.
