Tag: ffr

• Trouble in Yellen-Land

  

  Bond markets and the Fed aren’t making sense. The Fed (“Yellen”) rose the Federal Funds Rate (FFR) last Wednesday, June 12th to a range of 1.00% to 1.25%. The Fed has two mandates: (1) to keep prices stable (i.e. keep inflation around 2%) and (2) to minimize unemployment. In other words, stabilize the economy by cooling…

  Thomas Schleusener

  June 26, 2017

  Markets, Non-Fiction

  bond markets, bonds, equities, fed, fed funds rate, ffr, gdp growth, global growth, inflation, Janet Yellen, liquidity, normalization, Yellen, yield curve, yield curve dynamics

• Who’s got the power?

    When interest rates go up, and they will, the 50% increase across the board will topple markets, namely bond markets. Today’s interest rates are unprecedented. The lowest possible bound for an interest rate USED to be 0%. In finance terms, we call it the ZLB or the zero lower bound. Today bond yields in Germany…

  Thomas Schleusener

  August 3, 2016

  Markets, Non-Fiction

  banks, bonds, cash, clinton, ecb, fed, fed funds rate, federal reserve, ffr, financial crisis, financial institutions, fungible, interest rates, money, negative interest rates, pensions, power, rates, trump, us fed, us federal reserve, wall street, zlb