Don’t Reach for Yield Despite Interest Rate Changes
Treasury officers should remember that a main objective of the investment portfolio is to enhance profitability while balancing the institution’s sensitivity to interest rate changes.
New State Financial Literacy Standards a Welcome Change
For a number of years, Massachusetts had received a failing grade on its efforts to produce financially literate high school graduates. A new law signed by Gov. Charlie Baker in January hopes to change that.
Current Expansion Could be Longest in a Century, But How Long Can it Last?
Cost pressures are rising due to tariffs and transportation capacity issues. In response, manufacturers and retailers are raising prices in an effort to maintain margins.
Transaction Costs For Fixed-Income Securities Remain Stubbornly High
Banking regulations require that financial institutions implement robust systems to monitor, manage and control risks related to investment activities.
Investment Portfolios Increasingly Important To Balance Sheet Management
Bank investment portfolios are an increasingly important part of balance sheet management. As portfolios have grown by 5.9 percent over the past year, according to the FDIC, they also produce a larger share of earnings.
Fed Hikes Rates In A ‘Vote Of Confidence In The Economy’
As expected, the Federal Reserve raised its benchmark short-term interest rate for the first time in a year, pushing up the federal-funds rate by a quarter percentage point to between 0.50 percent
Fed Leaves Rates Unchanged, Hints At Increase In December
The Federal Reserve held short-term interest rates unchanged at its Nov. 2 meeting and hinted it expects to raise rates in December at the final gathering of 2016.
FOMC Could Increase Rates As Early As This Month
The Federal Open Market Committee in July decided to maintain the target range for federal funds at 0.25 percent to 0.50 percent following a meeting in Washington.
Fed Considers ‘Brexit’ While Holding Rates Steady
As expected, the Federal Open Market Committee decided to maintain the target range for federal funds at 0.25 percent to 0.50 percent following a two-day meeting last month in Washington.
Economy Performing Well, But Not Enough To Raise Rates
Federal Reserve officials left interest rates unchanged at their April 27 confab and remained cautious about raising rates next month as mixed global economic signals and low inflation weighed on the minds of policymakers. The committee suggested that the U.S. economy...
FOMC Considers Global Economic Outlook At January Meeting
Federal Reserve officials left interest rates unchanged at the January meeting of the Federal Open Market Committee (FOMC) and said they still expect to raise borrowing costs at a “gradual” pace while watching to see how the global economy and markets impact the U.S....
As Expected, Feds Raised Rates In December
As expected, the Federal Reserve raised interest rates last month for the first time in a decade while signaling that the pace of subsequent increases will be gradual. The Federal Open Market Committee (FOMC) unanimously voted to set the new target range for the...
Fed Says Rates May Rise Next Month
Federal Reserve policymakers said they will consider tightening policy at their Dec. 16 meeting, without making a commitment to act this year, as they said the economy is expanding at a “moderate” pace. “Labor market indicators show that underutilization of labor...
Looking Ahead To Fed Action On Interest Rates
Since spring, the Federal Reserve has consistently cited progress in the U.S. labor market, a sign it remains on course to normalize monetary policy. At the same time, the central bank noted stubbornly low inflation, which is creating caution among officials and could...Fed Aims For Cautious Rate Increases This Year
The Federal Reserve signaled it is moving toward interest-rate increases later this year with the economy improving after a winter slump, though central bank officials reiterated they will act cautiously. “Economic conditions are currently anticipated to evolve in a...Going Beyond Dodd-Frank’s Requirements
The financial crisis exposed deficiencies in credit ratings assigned by the major rating agencies such as Standard & Poor’s and Moody’s. This was especially the case for fixed-income securities tied to real estate. According to industry estimates, nearly 50...Approaching The Tipping Point
The Federal Reserve maintained its pledge to be “patient” on raising interest rates and boosted its outlook of the economy, even as it said inflation will decline further. “Economic activity has been expanding at a solid pace,” the Federal Open Market Committee (FOMC)...More Bumps Ahead After A Wild Year
Financial markets took a wild ride last year. As 2014 entered the home stretch, the plunge in the price of oil was the biggest story. Europe’s continued troubles and a slowdown in the Chinese economy muted the demand for oil.
Better Yields Ahead
As expected, the Federal Open Market Committee (FOMC) ended its asset purchase program last month, after concluding there has been substantial improvement in the outlook for the labor market since the program began.
Banks Holding For The Long Term In Securities Markets
Over the last year, many banks entered into “long-term relationships†with their securities portfolios, a phrase coined by The Wall Street Journal. The newspaper said large banks in particular “promised†that hundreds of billions of dollars of bonds would not be sold.
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