Borrowing from a Federal Reserve emergency lending program rose to a fresh record, just before the central bank raised the facility’s interest rate to stop financial institutions from taking advantage and arbitraging on its attractive terms. Demand for the Bank Term Funding Program rose approximately $6.3 billion in the week through Wednesday, Jan. 24 to … Read more
For the first time since the Federal Reserve started raising interest rates almost 18 months ago, the labor market is showing enough cracks to embolden some of the world’s largest bond investors to bet that the tightening cycle is finally ending. A spate of slowing employment metrics this week, crowned by Friday’s August payrolls report, … Read more
Another barometer of Federal Reserve hawkishness is making a bigger appearance on investors’ dashboards: quantitative tightening. Minutes from the Fed‘s December meeting released on Wednesday showed that officials had discussed shrinking the U.S. central bank’s overall asset holdings as well as raising interest rates sooner than expected to fight inflation, with “many” judging the appropriate … Read more
WASHINGTON: The contours of debate within the U.S. central bank over when to dial back support for the economy burst into the open on Wednesday as a key architect of the Federal Reserve‘s new policy strategy said he feels the conditions for raising interest rates could be met by the end of 2022. “Commencing policy … Read more