Our central bank continues to raise short-term interest rates, but it's still printing too much money.
But the short-term borrowing that finances it would also bid up short-term interest rates.
Since December 2008, the central bank has kept its short-term interest rate target at 0.00%-0.25%.
U.S. equity prices continue to rise as a benign short-term interest-rate policy holds sway.
The Fed is guessing at what the right level of short-term interest rates is.
Policy-makers have already undertaken two rounds of QE, since short-term interest rates are already near zero.
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As a result, British short-term interest rates are 7.25%, while continental rates are around 3.3%.
Real short-term interest rates in Japan (ie, adjusted for inflation) are zero or even slightly negative.
It is not only America that will see short-term interest rates turning up this year.
WTO, the short-term interest of presidential candidates of any party will be to talk tough.
With short-term interest rates at rock bottom, the Bank of Japan cannot lower them any further.
Last year the Federal Reserve cut short-term interest rates 11times, to 1.75% from 6%.
Fewer than 700, 000 short-term interest-rate futures contracts traded on the Chicago Mercantile Exchange just six years ago.
What if the Bank of Japan suddenly raised short-term interest rates, choking off the yen carry trade?
That can result in higher short-term interest rates, Wessel says those for loans of 1-3 months.
At a zero short-term interest rate, the central bank would have to work on adjusting longer-term rates.
Instead of trying to meet monetary targets, they use their own money to determine short-term interest rates.
Since then, futures prices have been predicting a 50 basis-point cut in short-term interest rates by April.
Adam Leach, principal analyst at Ovum, believes that the platform will attract short-term interest from existing users.
At present, short-term interest rates on the continent are around 3-4%, compared with over 7% in Britain.
Will another conundrum keep US interest rates low even if the Federal Reserve raises short-term interest rates?
The Federal Reserve has stated its commitment to keep short-term interest rates low for a long time.
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Since most mortgage payments are pegged to short-term interest rates, Norwegian mortgage-holders will be clobbered almost immediately.
And, because the Fed is not involved in setting short-term interest rates, it creates no opportunities for arbitrage.
On the other hand, the funds tend to suffer when short-term interest rates rise, or when turmoil subsides.
As noted above, even a quarter-percent increase in short-term interest rates would require a full-scale reversal of QE2.
To inoculate our economy against the global economic virus, the Federal Reserve should slash short-term interest rates immediately.
Hopefully, that outcome would also prevent unnecessarily large changes in short-term interest rates, but that is not clear.
Assume that the pessimistic Fed watchers are correct and that short-term interest rates climb a percentage point over the next year.
GDP, it is vital to maintain this primary surplus, and to keep short-term interest rates below the stratosphere.
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