Entries filed under 'Interest Rates'

    Labor Surprise

    October 2, 2015 5:45 PM by Zane Brown

    September’s disappointing jobs report stifles expectations of a Federal Reserve rate hike this year. 

    The September jobs report was both disappointing and alarming to many investors. Expectations were for another month of 200,000 or more new jobs, with confidence that the weak August report would be adjusted higher. Neither expectation was met, however.

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    The Fed: Are Yellen and Markets on the Same Page?

    September 25, 2015 4:04 PM by Zane Brown

    The U.S. Federal Reserve chair attempted to clarify the central bank’s policy stance on September 24. Investors appear far from convinced. 

    In an academic speech at the University of Massachusetts, on September 24, U.S. Federal Reserve (Fed) chairwoman Janet Yellen did her best to provide clarity on the direction of Fed policy. The fine-tuning came one week after a communiqué from the Fed’s policy-setting arm, the Federal Open Market Committee (FOMC), on September 17—and a subsequent press conference from Yellen—that left investors dazed and confused.

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    The Fed Scrubs a September "Liftoff"

    September 17, 2015 3:38 PM by Zane Brown

    Besides leaving the fed funds rate unchanged, the U.S. central bank also signaled a measured pace to future interest-rate hikes. 

    The long-awaited rate increase—“liftoff”— will have to wait at least another month. Although low unemployment (5.1%) and improving labor conditions provided justification for the U.S. Federal Reserve (Fed) to raise rates, the central bank’s policy-setting arm, the Federal Open Market Committee (FOMC), opted to delay taking the first step to policy normalization at the conclusion of its policy meeting on September 16–17.  

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    For the Fed, a 1/8% Solution

    September 11, 2015 1:15 PM by Zane Brown

    By starting small, the U.S. Federal Reserve could initiate interest-rate hikes without sparking market volatility.

    The U.S. Federal Reserve (Fed) needs to replenish its policy ammunition. To achieve that, it will have to raise the fed funds rate from its current near-zero level. Such a move will help the central bank restore its traditional policy approach of adjusting the benchmark interest rate to help speed up, or slow down, U.S. economic growth, while ensuring that price stability and employment growth are maintained.

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    Fixed Income: The 2015 Halftime Report

    July 17, 2015 12:40 PM by Robert Lee

    Robert Lee, Lord Abbett Partner & Director, discusses the outlook for the economy, the U.S. Federal Reserve, inflation, and interest rates.

    The second half of 2015 is here, and with it come a number of pressing questions for fixed-income investors. My colleague Andrew O’Brien and I held a web conference with financial advisors on July 16 to share our views on the current market environment and what may lie ahead for the sector. I’d like to summarize some of our key points here for those who missed the conference, or for those participants who would like to share these insights with others.

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