Topic: Short-Term Interest Rates

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Stock market jitters: Eight reasons investors are on edge

Stock markets have been swinging wildly of late. Even though corporate earnings have shown strength over the past year and not all economic indicators have been gloomy, investors are on edge. Uncertainty looms on several fronts – from concerns about the basic health of the economy to doubts about fiscal policies in the United States and Europe. Here's a look at the forces weighing on investors' outlook:
The Fed speaks: Five times Federal Reserve chairmen made waves with words

The Federal Reserve, the institution tasked with guarding the economy against inflation and financial instability, has long made headlines for its words as well as its actions. Here's a look at some moments when a Fed chairman has made waves with his words.
Photos of the Day: Photos of the day 02/09
2011 predictions: interest rates around the world

Currency analysts pay obsessive attention to economic factors that indicate the direction of interest rates, because interest rates represent the price of a currency. Any price change has a direct impact on the currency’s value. That can mean huge gains or losses for currency traders, but it also has a big impact on what savers earn, borrowers pay, consumers shell out for imported goods, and global companies plan in terms of compensation and hiring. In 2010, the stress on various currencies became clear, causing many central banks to push interest rates to record lows. Here’s a look at how those forces could play out in 2011 in six major regions of the world:

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OECD concerned that eurozone crisis could threaten world recovery (+video)

The Organization of Economic Cooperation and Development said Tuesday the eurozone must get member nations with debt problems under control, so as to not pose problems for a less than robust world economic recovery.
How Greek economic woes could help US consumers

Fears that Greece may default on its debt are spurring interest in US Treasury bonds, driving down interest rates on mortgages and auto loans – but not (alas) for credit card debt.
The Circle Bastiat
Should we change the way we teach economics?

Because of the recent financial crisis, teaching the basic principles of economics is harder than ever.
The Daily Reckoning
Debt outpacing growth and the case of Japan

Japan couldn't trick its way out of an economic meltdown, and neither can the US.
New window on Fed thinking: Interest rates to stay low until 2014

Delivering on a recent promise to convey its policy intentions more transparently to investors and the public, the Fed said it expected to keep short-term interest rates low into 2014.
Stocks bounce on low interest rate promises

The Dow rose 83 points to close at 12758, its highest close since May 2011, after the Federal Reserve pledged to keep interest rates near zero for almost three more years.
Federal Reserve unveils plan to be a little less secretive

The Federal Reserve intends to begin releasing a quarterly interest-rate forecast as a service to investors and to counter critics who say it is not transparent enough.
The Circle Bastiat
Wait, did the Fed bail out a bank last week?

The evidence is circumstantial, but some think that the Federal Reserve's spending indicates that it may have bailed out a major bank.
US stocks dive after ECB doesn't act

US stocks on the Dow dropped 198 points to close at 11997 after the head of the European Central Bank said there was no plan for purchases of European government bonds. The drop in US stocks was the worst since November.
The New Economy
Fixed mortgage rates: How low will they go?

Fixed mortgage rates could go down another half percentage point. But if refinancing can save serious money now, homeowners should grab lower fixed mortgage rates now.
The Reformed Broker
ECB rate cuts won't fix Greece

The European Central Bank may cut rates in October
Stock market jitters: Eight reasons investors are on edge

Stock markets have been swinging wildly of late. Even though corporate earnings have shown strength over the past year and not all economic indicators have been gloomy, investors are on edge. Uncertainty looms on several fronts – from concerns about the basic health of the economy to doubts about fiscal policies in the United States and Europe. Here's a look at the forces weighing on investors' outlook:
Stefan Karlsson
The Fed's new easing scheme

Long term interest rates will fall, making monetary conditions "easier"
Lower interest rates: So what?

Lower interest rates for mortgages, other loans could help consumers. But Fed's move to lower interest rates hurts savers and may not buoy stocks.
Treasury bonds soar, yields drop on Fed plan

Treasury bonds set new lows for interest rates. Federal Reserve plans to push down interest rates on Treasury bonds to try to get the economy expanding more quickly.
Treasury bond market intervention: Can Fed boost economy?

Treasury bond market could be subject to Federal Reserve 'twist' – selling short-term securities to buy long-term ones. The treasury bond market move could lower mortgage rates – or stoke inflation.
The Circle Bastiat
Why Bernanke's analysis is wrong

Washington leadership's anti-market rhetoric is to blame for our current economic woes
Bonds: US Treasurys rise as confidence drops

Bonds rise as interest rates fall. Will Federal Reserve buy more bonds?
Low rates squeeze savers. Should Fed hike them?

Low rates are supposed to stimulate the housing market, but haven't done much so far. Low rates are hurting retirees, however.
Eurozone debt: Grave threat to US economy or imaginary boogeyman?

Under grimmest scenario, debt-burdened Greece, Ireland, Italy, and Spain can't pay what they owe to Eurozone banks, which then stumble, causing US banks to falter, too. But US banking system is stronger now, and regulators are more vigilant, say optimists.
Federal Reserve more likely to do third round of easing: pros

Federal Reserve will start purchasing assets again, some market observers predict. The chances of the Federal Reserve starting another round of quantitative easing shot up in the last week as markets became unstable.
Fed's interest-rate move wows Dow, but is also sign of plodding recovery

The Dow recovered almost 430 points Tuesday, after the Fed said it would keep short-term interest rates low until mid-2013. But the Fed's surprise move also points to expectations for slow recovery.
Futures market tumbles after S&P downgrade of US

Futures market for US stock fell on Monday after the US credit rating was reduced from AAA to AA+ on Friday. For the Dow, the futures market fell 200 points, S&P 500 futures fell 24 points, and Nasdaq futures fell 44 points.
Stocks sink as US comes closer to a default

Stocks fell again on Wednesday, with the Dow losing 199 points, as lawmakers in Washington remained at odds over a debt solution
The Simple Dollar
Interest rates: Will savers ever see them rise again?

Interest rates are so low now that it makes sense to pay off even low-interest debt. But interest rates will rise again.