Higher Rates Not Helpful In Levered Economy, Raising Hopes Of Easing Late Next Year, But Fed’s Hands Are Tied Given Elevated Inflation

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The federal government is up to the gills in debt. Interest payments run up in the billions every year. This was not much of an issue in a low-interest-rate environment. But right now, the Federal Reserve is tightening. Higher rates … Continued

With monetary quiver empty, are central banks ready to add arrows?

posted in: Credit, Economy | 0

Two members of the Monetary Policy Committee, the Bank of England’s interest rate-setting committee, voted to raise interest rates by 25 basis points in August, the minutes released yesterday showed.  Market participants were taken by surprise.  They have been conditioned … Continued