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.