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US interest rates

  • Chair of the Federal Reserve Janet Yellen says rates will rise this year if economy remains on track causing dollar to jump

    July 29, 2015

    The Federal Reserve has reiterated that it is on course to raise interest rates in 2015, as Chair of the Federal Reserve described the US economy’s prospects as “favourable”. Hiring has pushed the country towards maximum employment, while factors that have been holding back inflation were likely to diminish, Yellen indicated in a prepared statement [...]

  • Federal Reserve Chair Janet Yellen says US interest rates should rise in 2015

    July 11, 2015

    Janet Yellen has reiterated the case for raising interest rates later this year, saying the US economy recovery has solid underpinnings and is expected to strengthen in coming years. In a speech, Yellen said the labour market in America had not yet fully recovered and progress in lifting inflation to the 2 per cent target [...]

  • US interest rate rises: Investors fear blue chip equity sell-off

    June 29, 2015

    Blue chip equities may be set for a sell-off if the US Federal Reserve raises interest rates this autumn, investment managers are predicting. Base rates in the US have been held at a historic low of 0.25 per cent since December 2008. One consequence of this long period of near-zero rates is that some parts [...]

  • Global turbulence to rock UK: Trouble in the Eurozone, Fed rate hikes and a Chinese slowdown could hit markets

    June 8, 2015

    Yesterday, the Confederation of British Industry (CBI) revised its UK economic growth forecasts to 2.4 per cent and 2.5 per cent for 2015 and 2016 respectively, down from 2.7 per cent and 2.6 per cent. It wasn’t troubles at home that concerned the business organisation. The CBI cited economic instability in Greece, a sluggish Eurozone, [...]

  • US jobs growth bolsters chance of Fed rate hike

    June 5, 2015

    US JOB growth accelerated sharply in May and wages picked up, signs of momentum in the economy that bolster prospects for an interest rate hike in September. Nonfarm payrolls increased 280,000 last month, the largest gain since December, the Labor Department said yesterday. While the unemployment rate rose to 5.5 per cent from a near [...]

  • US interest rate hike: Are emerging markets in for a bumpy ride?

    May 25, 2015

    Developing economies are better prepared to withstand higher US interest rates.   A slowdown in global trade and investment growth, as well as a fall in commodity prices are dominating the outlook for emerging economies. Major central banks – notably China, India, Indonesia and Turkey – have focused on cutting interest rates to shore up [...]

  • European markets rise on Fed rate hike caution

    March 30, 2015

    European markets started the day higher, after comments made by US Federal Reserve chief Janet Yellen hinted at "gradual" rate rises, reassuring investors. The FTSE 100 opened 0.6 per cent up, while Germany's Dax jumped 1.23 per cent and France's Cac 40 rose one per cent. Investors have showed caution in recent weeks after a [...]

  • Yellen: Fed will drop the word “patient” before it hikes interest rates

    February 24, 2015

    The US Federal Reserve's rate-setting committee will lose patience before it hikes interest rates, promised Fed boss Janet Yellen today – although she remained cagey about when that would happen. In prepared remarks to the Senate Banking Committee, she suggested there is no "given point" at which the Federal Open Markets Committee (FOMC) will decide [...]

  • Yellen pledges patient approach before starting to hike rates

    December 17, 2014

    US POLICYMAKERS yesterday voted not to change its policy stance while also saying they would be “patient” before beginning to raise interest rates. The term “considerable time” was ditched from the Fed’s statement. It was initially used to signal how long rates would stay low for after the asset purchase programme ended in October. Instead, [...]

  • Federal Reserve: US interest rates to remain near zero

    September 17, 2014

    The Federal Reserve has stuck to its pledge to keep interest rates near zero for a "considerable time" after its asset purchase program ends next month.   In a statement following the Fed’s Open Market Committee, the US central bank also announced it had sliced a further $10bn from the programme, leaving it with monthly [...]

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