Tag Archives: rate

Interactive Brokers founder and billionaire Thomas Peterffy has spotted one likely unintended consequence of the Federal Reserve embarking on raising interest rates. “There is a lot of leverage in the system as the Fed begins to raise rates. We will be looking at bankruptcies maybe among many of the private equity firms that are invested in on the high leverage, and in several businesses that basically will not be able to pay the interest,” Petterffy told Yahoo Finance. Despite that very real… Source link

The U.S. economy added back the most jobs since July 2021 in February, with job growth accelerating even in the already-tight labor market as new Omicron cases from earlier this year came down. The Labor Department released its February jobs report Friday at 8:30 a.m. ET. Here were the main metrics from the print, compared to consensus estimates compiled by Bloomberg: Non-farm payrolls: +678,000 vs. +423,000 expected and an upwardly revised +481,000 in January Unemployment rate: 3.8% vs. 3.9%… Source link

Bank of Canada Governor Tiff Macklem speaks during a news conference (REUTERS/Blair Gable) The Bank of Canada raised its target for the overnight rate to 0.50 per cent. The 25 bps hike to contain inflation is the first since 2018, after cutting to help cushion the pandemic’s economic blow in 2020. Canada’s central bank says more rate hikes are coming but says it is following the situation in Ukraine closely. “The unprovoked invasion of Ukraine by Russia is a major new source of… Source link

U.S. employers added back far more jobs than expected in January even as Omicron cases surged at the beginning of the new year. The Labor Department released its January jobs report Friday at 8:30 a.m. ET. Here were the main metrics from the print, compared to consensus estimates compiled by Bloomberg: Non-farm payrolls: +467,000 vs. +125,000 expected and a revised +510,000 in December Unemployment rate: 4.0% vs. 3.9% expected, 3.9% in December Average hourly earnings, month-over-month: 0.7%… Source link

Google’s public cloud has been chasing competing services from Amazon and Microsoft for so long, you might think it would be getting winded. But the critical Alphabet division keeps on keeping on, yesterday reporting revenues of more than $5.5 billion for the fourth quarter. That was the good news. The bad news was that Google Cloud accrued operating losses worth $890 million at the same time. It may be hard to understand how a business with a run rate greater than $22 billion is… Source link

If the Federal Reserve raises interest rates seven times this year as Bank of America head of global economics Ethan Harris predicted in a new call, the stock market won’t be immune from those hikes. “I think it’s a flattish market, to be honest,” Harris told Yahoo Finance Live on Monday. “I think for now we have had the near-term corrections and the markets had to deal with the fact that the Fed isn’t going to be completely friendly going forward. They helped drive the stock market. Now they… Source link

It’s been a frustrating pandemic-long journey for house seekers like Adan Martinez. He’s been hoping to buy his first home near Harlingen, Texas, with a budget of $200,000.  “There were several homes I was interested in but waited off on, $180K and $215K, respectfully. But mid-year last year, prices on them jumped to well over $50K-80K,” Martinez told Yahoo Finance.  The rush to find a home is now greater than ever. Home prices keep rising — as mortgage rates inch higher. “[I’m] definitely… Source link

Federal Reserve watchers are quickly ramping up and revising forecasts on how many interest rate hikes they anticipate this year after the central bank doubled down on plans to tighten policy and rein in inflation. Economists at Bank of America and JPMorgan increased their forecasts Friday, two days after the Fed’s policy-setting meeting. BofA released one of the more aggressive predictions on the Street. It now expects seven hikes this year — that number was first uttered by JPMorgan CEO… Source link

Federal Reserve Chairman Jerome Powell on Wednesday all but confirmed that the central bank will raise interest rates in its next policy-setting meeting in mid-March, as the central bank continues to battle rising prices. “I would say that the committee is of a mind to raise the federal funds rate at the March meeting, assuming conditions are appropriate for doing so,” Powell said in a press conference after the central bank opted to hold the short-term federal funds rate at near zero. But… Source link

This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe Tuesday, January 25, 2021 Fears of a policy error are overriding Q4 earnings Remember those “landmines” the Morning Brief recently warned could detonate in 2022? One of them is just days from going off, and at the worst possible time. The head-spinning volatility that’s been throttling investors since the new year culminated on Monday by… Source link