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The dollar, meanwhile, advanced, a sign that investors do not expect further Fed rate cuts.
Traders will also be eagerly awaiting the Fed rate decision at 2:15 ET.
Bank panics are inherently deflationary, so the Fed rate cut was needed.
Jones forecasts a Fed rate hike in the second half of 2013.
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Given his more optimistic view on the U.S. economy than the consensus he is calling for a Fed rate hike in January 2013.
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No one anticipated the unusually robust mortgage market of the last three years, and mortgage rates continue to hover near historic lows even with Fed rate increases.
Alternatively, it could mean that they fear the inflationary impact of new Fed rate cuts, but if that were the case, Treasury bond prices should have fallen.
Since the exchange rate is a binary issue, not distorted by an overhang of global liquidity, we take euro-dollar stability and falling gold as rejecting the idea of a Fed rate cut.
Certainly, European markets have reached for their handkerchiefs this past few days, though opinions seem divided about whether the Fed rate cut in the U.S. was a smart move or a sign of panic.
Managements at NLY and ANH have been battle-tested through several rate and credit cycles, but newer entrants have only had to endure the Credit Crisis of 2008-09 and not a prolonged Fed rate hiking cycle.
Remaining consistent with this principle, Brian argues that when the Fed Funds rate (the rate set by the Fed) is lower than the nominal growth rate, the Fed is inflationary, and when the Fed Funds rate is higher than the nominal rate, the Fed is deflationary.
After Tuesday's Fed rate cut - its third rate cut this year - most experts believe that another UK rate cut in on the cards - although the Bank will be careful to point out that it takes decisions on the basis of the situation of the UK economy.
While some economists on the alleged fringe seek the Fed's abolishment, there's a general acceptance among the profession that the Fed plays a necessary economic role in setting the short rate for cash, or the Fed funds rate.
Hence, when the target Fed Funds rate reached an effective zero rate, the Fed was not out of tools.
All else being equal, that would push the fed funds rate below the Fed's target, which is why it sterilises those excess reserves by selling some of the Treasuries in its portfolio.
We think the limited reaction to the increase in rate expectations suggests room for a higher Fed funds rate.
There was no significant change in the money supply, the Fed Funds rate or any other of the traditional parameters that track Fed policy.
Ben Bernanke has no choice but to engineer an interest rate spike to dampen inflationary fires and rescue the dollar, taking the Fed funds rate up to a Volkeresque 18%.
By lowering the fed funds rate this much below Europe, the U.K., China and most emerging markets, the Fed has re-established the dollar carry trade.
Many expect the Fed will raise the Fed Funds rate later this year.
Fully four years ago, Bernanke and company dropped the Fed funds rate to 0%.
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It is with the Fed funds rate that logic about price controls goes out the window.
His study documents that a higher Fed Funds rate would increase the velocity of the monetary base.
Fed interest rate cuts take some number of months to wash through the economy, typically six to nine.
Everyone is focused on what the FED plans to do with interest rates, meaning the FED FUNDS rate.
The Fed did announce that it would keep the Fed Funds Rate between 0% and .25% through 2013.
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The Fed funds rate is money loaned from one bank to another overnight.
Artificially low in fact, as a result of Federal Reserve easing, QE and a near zero Fed Funds rate.
Short term, at least, the Fed's hawks should calm down and stop pressing for a higher Fed funds rate.
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