The Federal Reserve cut its benchmark interest rate Wednesday for the third time this year to try to sustain the economic expansion in the face of global threats. But it indicated that it won’t cut again in the coming months unless the economic outlook worsens. The Fed’s move reduces the short-term rate it controls, which […]
With the U.S. Federal Reserve scheduled to announce its latest rate decision on Wednesday, what can institutional investors expect? Rob Almeida, global investment strategist at MFS Investment Management, says he expects a 25-basis point cut. “I think anything different from that would be a surprise to the market.” Since the last cut the data has […]
The European Central Bank on Thursday delivered a new blast of monetary stimulus to help the economy in the face of uncertainties like the U.S.-China trade conflict and Brexit. The central bank for the 19 countries that use the euro cut the rate on deposits it takes from banks to minus 0.5 per cent from […]
For the first time in its existence, the German 30-year government bond yield slipped into the negatives and it isn’t inconceivable that U.S. Treasuries could follow suit, said Joachim Fels, global economic advisor at PIMCO Corp., in a recent blog post. While negative yields have lately been cropping up in developed markets outside the U.S., […]
The U.S. Federal Reserve is widely expected to cut its interest rate Wednesday for the first time in over a decade — a big step, though one unlikely to pull Canada’s central bank out of its holding pattern any time soon. The Bank of Canada sent signals earlier this month that the Canadian economy is […]
While there are signals that the global economy is slowing down, it doesn’t appear to be quite at recession levels. “That has major investment implications,” said Alec Young, managing director of global markets research at FTSE Russell, in a webinar on Wednesday. Trade uncertainty is a big part of recent sluggishness in markets, he said. […]
Central banks seem to be changing their tunes, with the Federal Reserve expected to cut rates twice before the year is out, according to Manulife Investment Management’s third quarter outlook. The European Central Bank, noted the outlook, is also likely to take a move dovish tone, with additional monetary easing measures, including rate cuts, expected […]
For those worried the cycle is about the turn, it’s important to consider that there is no established length for a market cycle, said Avery Shenfeld, managing director and chief economist at CIBC, during a panel at a Canadian Investment Review and Benefits Canada Investor Insight Breakfast in Toronto on Jan. 10, 2019. Indeed, the […]
Yesterday, the Federal Reserve announced it will raise the target range for the federal funds rate by a quarter point and dialed back its expected rate hikes for next year from three to two. “Over the past year the economy has been growing at a strong pace, the unemployment rate has been near record lows, […]