The level of the index reflects the looseness of financial conditions: an increase in interest rates or the exchange rate leads to a tightening, a rise in share prices to a loosening.
The June gilt future fared poorly on expectations that the report might yet instill an interest rate increase from the Bank of England.
At the mercy of the banks, DeWelt agreed to a two-point increase in the interest rate, to 7.75% on its revolving line of credit borrowings and 6.93% on its term loan.
As the inflation rate climbed above 3% a month late last year, he silently applied the brakes: the government raised interest rates and slowed the rate of increase in public spending.
The Fed worked hard in June to increase the awareness of the inflation risk, causing interest rate expectations to rise.
The rising wages makes an interest rate increase next month more likely as the Bank of England has said 4.5% earnings growth is the maximum consistent with its 2.5% inflation target.
BBC: News | The Economy | Chancellor warns against pay rises
It has stopped hinting about the possibility of an interest-rate increase.
Overall car sales, it is true, are now declining, but this drop comes only after the very large increase seen at the end of last year, fuelled by special zero-interest-rate loans.
Greifeld has bought exchange companies in Boston and Philadelphia, as well as Stockholm's OMX Group, with exchanges in northern Europe, to increase the trading of securities and derivatives like options and interest rate swaps.
Stocks could rise or fall, depending on the relative growth rate of profits compared to the increase in interest rates.
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Separately, Bloomberg reports that the Maestro himself, Alan Greenspan, is so concerned about a sudden sharp increase in interest rates that every day he checks the rate of the 10-year note and 30-year bond calling them the critical Achilles heel of the economy.
Senate Minority Leader Mitch McConnell (R-KY) defended the vote, noting that the Republican party was not in favor of a student loan interest rate increase but did not support a boost in taxes for small businesses.
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But you go on to suggest that central bankers are powerless to stop the development of asset-price bubbles short of a blunt interest-rate increase.
As expected, the Tuesday meeting delivered another 25 basis-point increase in the benchmark interest rate, to 4.25%, but the language of the accompanying statement contained both hawkish and dovish signals.
The bottom line is that a massive increase in the supply of debt coupled with a rising rate of inflation will always place upward pressure on interest rates.
It was shoved back into recession partly by its own policies: an ill-timed tax increase in 1997 and the (temporary) ending of the Bank of Japan's zero-interest-rate policy in 2000.
Most of those are tied to the prime rate, so if the prime rate were to increase, then the interest rates on those credit cards will undergo a corresponding increase.
"Until the base rate starts to increase, there is no prospect of savers seeing any meaningful increases on the paltry interest returns they are currently receiving, " said Andrew Hagger, of Moneynet.
He said the so-called Taylor Rule, a method of predicting interest rates based on inflation, points to a sizable 0.75% increase in the Fed Funds rate if the rate of inflation he expects to see indeed shows up.
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