Interest rates are unlikely to rise very much in the next few years. That is the message coming through from the Fed’s June 15 meeting and from Chairwomen Janet Yellen’s testimony to Congress this week. This is a notable change in tone over the last few weeks. The Fed capitulated to the realization its forecasts
News from Jackson Hole, Wyoming leads off this week, where central bankers from across the globe met last week. In addition, the analysts from Charles Schwab provide a market perspective, and an overlooked vehicle for saving for retirement is examined. No rate change until U.S. has 2% inflation and strong job market. Each year the
In our world of investment management and financial planning, uncertainty begets questions: sometimes the best reply to any of them is It Depends. This week we examine several current issues where It Depends. When will the Fed hike rates? It depends. What will the conflict in Iraq mean for the economy and investors—it depends. Will
The prospect of interest rates remaining low for longer has become clearer in the first 100 days of Janet Yellen’s leadership at the Federal Reserve. At the same time the threat of new asset bubbles forming may have become more pronounced. These are views expressed by faculty at the Wharton Business School. While tapering of
Janet Yellen takes the helm of the Federal Reserve February 1. She will be the first female head of the Central Bank. Just what kind of leader will she be? That’s the question we ask this week. She is a first rate academic uniquely qualified to address the current labor market malaise. She cares more
Mixed signals—that’s the only term to describe it. As the calendar turned into a New Year, signs looked promising that the economy was beginning to gain strength—to finally reach the point it does not require monetary stimulus. Then, the Friday jobs report, which Mohammed El-Erian of Pimco called ‘strange and puzzling’, created doubt about the
Inflation rates—a general increase in prices--are very low. With Fed officials talking openly about low inflation and the risk of deflation, it is appropriate to examine inflation risk and how to address it. High levels of inflation erode purchasing power and the value of stocks and bonds. This week we review aspects of inflation. The
I fondly remember “the good old days,” when government actually worked much of the time, when a conciliatory spirit was a badge of honor, and tough issues were resolved thoughtfully and with civility. Howard Baker, Tennessee Senator from 1967 until 1985, exemplifies a leader who set the tone for those times. In his day he