Practical analysis for investment professionals

Federal Reserve


Richard H. Clarida on the Evolution of Fed Communications

Richard H. Clarida discussed what he calls "an evolution in Fed communication."

Why Savers Might Miss Out on the Benefits of Higher Interest Rates

Do higher interest rates actually lead to higher returns on savings? Research shows a 1% increase in interest rates by the US Federal Reserve equals a 0.34% increase in the rates paid by banks on savings deposits. Why do savers fail to capture the benefits of higher interest rates?

Interest Rates, the Fed, and Inflation’s New Normal

If new disinflationary pressures are left unaccounted for, inflation, holding all else equal, will remain subdued, and the pace of rising rates will be slower than was expected by either the market or the Fed.

Are Low Interest Rates Driven by the Fed or by Fear?

Next time you hear a pundit or an investor complain that the Fed is keeping rates too low, consider the evidence that suggests rates are low because nobody really has a grasp on which direction future growth may go.



By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close