Why Should the Fed Shrink Before Tightening?

September 08, 2016

Both the Fed and Congress may be able to overcome short-term volatility. As the US Federal Reserve (Fed) becomes more inclined to raising the Fed funds rate (FFR) according to recent speeches from the Federal Open Market Committee, it should consider shrinking its balance sheet of $4.5 trillion...

The World This Week: End of an Era as the Fed Raises Rates

December 19, 2015

The Fed’s historic decision to raise rates will benefit savers, strengthen the dollar and increase volatility, as well as possibly reduce asset prices and inequality. On December 16, the Federal Open Market Committee of the US Federal Reserve (Fed) “decided to raise the target range for the...

How the US Interest Rate Might Affect You

September 26, 2015

With all the talk of an imminent interest rate hike, there are likely to be winners and losers.   With the economy steadily improving and unemployment rates continuing to drop, the US Federal Reserve (Fed) is expected to raise interest rates for the first time since 2006. Fed Chair Janet...

Data Dependency and Murky Waters for the Fed

March 29, 2015

Economic data points to September 2015 as a good time for the US Federal Reserve to increase interest rates. Dominating the news headlines has been the US Federal Reserve’s (Fed) timeline for raising interest rates from the current range of 0% and 0.25%. The Federal Open Market Committee...