The US Federal Reserve has raised interest rates and signalled two more hikes this year March 21, 2018 The US Federal Reserve has raised its benchmark interest rate by a quarter of a percentage point and signalled two more hikes in 2018 as it pointed to a strengthening US economy. The Fed raised rates to a range of 1.5 per cent to 1.75 per cent, as was widely expected, and newly appointed chairman [...]
Why economic growth (and rates) could increase faster than expected March 8, 2018 Donald Trump’s plan to boost the US government’s spending by $300 billion has added fuel to a US and global economy already firing on all cylinders. The effect of the Bipartisan Budget Act of 2018 which detailed these plans (which also include a further $90 billion in disaster relief spending) will be felt far beyond [...]
Where’s the beef? Meat substitutes are suddenly big business: we try the UK’s first plant-based ‘bleeding burger’ and ask if meat will one day be a thing of the past March 8, 2018 In the mockumentary Carnage, Simon Amstel imagines a future in which eating meat is as socially unacceptable as cannibalism. Groups of elderly people sit in therapy sessions trying to come to terms with the atrocities they committed against the animal kingdom, with the narrator quipping “‘Meat-free Monday’ now sounds about as appealing as ‘ethnic cleansing-free [...]
Is inflation a bigger concern than bond markets? March 2, 2018 Rising bond yields have been cited as the reason behind the sell-off in the equity markets but should investors be just as concerned about a spike in inflation? The 10-year US Treasury yield has been moving ever closer to 3 per cent, a level that could start to concern some equity market investors. While the [...]
Despite the volatility there’s much for US markets to celebrate March 1, 2018 There was no escaping reports of US stock market volatility throughout February. Yet oddly, despite Wall Street heading for its first month of losses in nearly a year, the Dow Jones, S&P 500 and Nasdaq are still not that far off their record highs. Having fallen 10 per cent from the records set on 26 [...]
Fed chair willing to hike rates faster if necessary February 28, 2018 On Tuesday, US Federal Reserve chairman Jerome Powell’s prepared comments to Congress were released ahead of his appearance before the House Financial Services committee. In them he downplayed concerns over recent stock market volatility, claiming dramatic swings do not weigh heavily on his outlook for the economy and maintaining his expectation for further gradual increases [...]
New US Federal Reserve boss Jerome Powell says “gradual” rate rises are needed February 27, 2018 Jerome Powell opened his innings as head of the world’s most powerful central bank today with a bullish view on the US economy and a vow to continue to raise interest rates. The new Federal Reserve chair told a US Congressional committee that the rate-setting Federal Open Market Committee will continue to pursue “further gradual [...]
Theresa May to give Brexit end state speech next Friday after Chequers away-day yields results February 23, 2018 Theresa May will give a major speech outlining the government’s negotiating position for the future relationship after Brexit next Friday. Last night the Prime Minister succeeded in uniting the Remainers and Leavers in her Brexit war Cabinet after a gruelling eight-hour session of discussions and presentations appeared to end with success for those pressing for [...]
US Federal Reserve minutes signal growing confidence in raising interest rates as US economy picks up February 21, 2018 The Federal Reserve’s rate-setting committee signalled a more upbeat mood surrounding inflation in the minutes of its January meeting released today, with growing confidence in raising interest rates. Most believed that inflation will pick up. It is likely to firm up expectations that the new Federal Reserve chairman Jerome Powell will raise interest rates next [...]
Why we aren’t too worried about rising bond yields February 21, 2018 The market was spooked by the recent rise in bond yields as data implied that US interest rates could rise at a faster pace than expected. We expect a positive repricing of bonds. The recent move higher in global bond yields has to be viewed in the context that last year was probably the least [...]