New York Federal Reserve President William Dudley said concerns that U.S. central bankers are considering negative interest rates are “extraordinarily premature.”
The chorus of international central banks steering interest rates into negative territory is taking a heavy toll on big U.S. banks and their stocks.
A former president of the Federal Reserve just came out in support for negative interest rates, in effect, forcing consumers and companies to “pay to save.”
The imposition of negative interest rates by central banks in Japan and Europe has American investors spooked that the U.S. Fed might be mulling a similar policy. They needn't worry.
Fed Chair Janet Yellen will appear before Congress on Wednesday and Thursday for her semi-annual report on monetary policy.
Safety trade underway as 10-Year yield hits lowest level since February 2015.
Yellen will appear Wednesday and Thursday and she will undoubtedly be asked if the Fed has backed off plans to raise interest rates as many as four times in 2016.
The Bank of England left its key interest rate unchanged at 0.50%. The rate has been at 0.50% since March 2009.
Another solid month of job creation might not be enough to quell fears that the U.S. economy is slowing down.
The January jobs report, due out Friday, will highlight next week’s economic calendar. Analysts are forecasting another strong month of job creation but much of the focus will be on wage growth.
The Bank of Japan ramped up its aggressive stimulus campaign on Friday, adding negative interest rates on central banks deposits to its massive asset-buying programme, stunning financial markets that expected no action or a moderate increase in asset purchases.
U.S. government bonds strengthened Wednesday after the Federal Reserve's interest rate statement.
The dollar weakened against its key rivals Wednesday after the Federal Reserve left its key lending rates unchanged after its January policy meeting.
With an eye toward recent global market turbulence, the Federal Reserve on Wednesday left interest rates alone while acknowledging the rough start to 2016 and offering assurances that interest rates probably won't be moving any higher any time soon.
Since no rate hike is expected, investors will instead be looking for the Fed to backtrack somewhat on its optimistic forecasts for 2016.
The Federal Reserve will meet next week for the first time since raising interest rates off their rock-bottom lows in December, but policy makers won’t be raising rates again. A reading on fourth quarter GDP is also due.
The European Central bank will "review and possibly reconsider" it monetary policy stance when it next meets in March because of weaker-than-expected inflation dynamics in the euro zone.
The European Central Bank kept its key refi rate at 0.05%. The ECB also kept its deposit rate at a negative 0.30%. That means banks continue to pay to have their money parked at the bank. The ECB last cut the refi rate in September 2014.
Among all the age groups surveyed, millennials expressed the most concern about how higher borrowing costs would affect their wallets and the least concern over whether higher rates would hurt the broader economy.
The Bank of England held its benchmark interest rate steady Thursday, as plunging stock markets add to concerns that the global economy could be facing a bumpy ride in 2016.