Thus, the rate hike has the effect of making smaller banks pay higher interest expense to the mega-banks favored by the Federal Reserve.
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Fans Flock To See New Star Wars Movie
Brian Burnham, assistant manager at Maya Cinemas, said the theater has been selling tickets for about two months. And while it wasn’t too busy this afternoon, Chatterly says tonights shows are already sold out.
Economic Affairs Secretary Shaktikanta Das said the Fed’s “accommodative” monetary stance is actually good for the emerging market economies and India does not expect any large selling by foreign funds. Observers believe the decision to hike rates proves that the USA economy is once again strong enough following the 2007-2009 Great Recession.
CRADDICK: “Lifting the Antiquated US Crude Oil Export Ban Will Be Monumental”
Commissioner Ryan Sitton said, “Lifting the crude export ban is critically important to Texas oil producers who are { currently US } oil producers will soon be able to export crude oil with minimal restrictions for the first time in { nearly
Check out Janet Yellen’s full press conference here.
Obama presses Turkey’s president to lower tensions with Iraq
On Dec. 4, Turkey reinforced the force protection component of its units in the camp due to increasing threats to their security. Their conversation came after Turkish troops were wounded when a training base in northern Iraq was hit by Daesh on Wednesday.
The move to lift rates by 0.25 percentage point to 0.25-0.5 per cent is due to signs of recovery in the United States economy.
Logan Wright, director of China market research for Rhodium Group, says Beijing’s need to control capital outflows would hamper the ability of policymakers to stimulate China’s slowing economy by cutting interest rates.
Stocks closed up sharply higher.
The Dow Jones industrial average rose 224.18 points, or 1.3 percent, to 17,749.09.
Libor, a global rate benchmark for $350 trillion worth of securities and loans, booked its biggest single-day rise since May, 2010.
The Fed has chosen to raise rates slowly in order to avoid slowing down the economy. A towering market in junk bonds is starting to collapse at the prospect of an end to the ultraloose credit that sustained it. Crude oil is trading at the lowest price in almost seven years.
And should there be a further interest-rate hike in the future, … those countries will likely follow suit. The European Central Bank earlier this month announced a cut to overnight deposit rates from minus 0.2pc to minus 0.3pc and extended a €60bn stimulus programme by six months. Within minutes of the announcement, Wells Fargo announced it was hiking its prime lending rate to 3.5% from 3.25%.
Interest rates play a major role in economic performance.
“The important question is how far, how fast”, said economist Edwin Truman at the Peterson Institute for International Economics. And competition for buyers will spur them to take other steps to hold down rates, such as accepting lower profits. “Consumers won’t even feel it”.
The rate hike sparked a surge in the dollar and global stocks on Thursday, but led to a 2% slide in gold.
Stephen Freedman, senior investment strategist at UBS Wealth Management Americas, said the Fed is “taking off the Band-Aid” because the economy has healed substantially. That is in line with the consensus view of economists. The vote in favor of the change on the Federal Open Market Committee (FOMC) was 10-0. It cited “considerable improvement” in the job market. “Equity markets are beginning to know their enemy – the continued sell-off in energy prices”.
Short-term rates no longer are pegged at 0%. The Fed plans to use those two rates to help meet its new higher target for the funds rate. However, not every central bank boosted rates.
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The moves by the Fed were not seen favorably by all.
