Articles Tagged with ''Federal Reserve''

Fed changes tune on raising interest rates this year

Minutes reveal more dovish approach
The Federal Reserve has been forecasting an average two to four interest rate hikes in 2018, however the minutes from its latest meeting reveal a more dovish approach. As the Fed raises concerns over recent trade tariffs, the chances of there being four rate hikes in 2018 falls.
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Dodge Analytics: Residential construction starts fell 9% in April

Multifamily dips 7% YoY, single-family rises 7%YoY
Residential construction starts faltered in April as did the rest of the construction sectors, according to a report by Dodge Data & Analytics. The report showed that residential construction starts, both single-family and multifamily, totaled 303.8 billion, a 9% decrease from March. Multifamily dropped by 20%, which signaled the second declining month in a row.
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Monday Morning Cup of Coffee: Federal Reserve Board to vote on lifting Wells Fargo’s growth restrictions

Plus St. Louis Fed President James Bullard says further rate increases aren’t necessary
Following pressure from Sen. Elizabeth Warren, Federal Reserve Chair Jerome Powell has indicated that the Fed's Board of Governors will hold a vote to decide whether or not to lift growth restrictions placed on the megabank. Plus, here's why Capital One putting a stop to mortgage lending is good for its investors.
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FOMC keeps rate hike off the table at May meeting

Says federal funds rate to remain low “for some time”
The Federal Reserve announced that while economic activity has continued to strengthen along with the labor market, it will not raise rates following its May meeting. The market was not surprised by today’s decision and only predicted a 6% chance of a rate hike in May. Next month, however, could be a different story.
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Banks disappointed in proposed stress test changes

Gives relief to smaller lenders
Tuesday night, the Federal Reserve announced its proposed changes to its annual stress test procedures – and they’re not going to benefit the big banks. But smaller lenders, or those not considered “systemically important” would see a significant decrease in their capital requirements.
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Goldman Sachs: Fed to raise rates once a quarter until 2019

Federal funds to hit 3.25% to 3.5% by end of next year
The Federal Reserve elected to increase interest rates during its March meeting for the first time in 2018, but it’s far from done raising rates for the year, or so says a note Goldman Sachs sent to clients. In fact, the Fed could raise rates as quickly as once per quarter.
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Freddie Mac: Mortgage rates remain steady after sudden drop

Could soon soar following Treasury yield increase.
Mortgage rates increased only slightly after dropping last week for the first time in more than two months, however they could soon begin their upward climb once again. After the Federal Reserve voted to increase mortgage interest rates, it sent the 10-year Treasury soaring. Mortgage rates could soon follow.
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Federal Reserve raises interest rates for first time in 2018

Indicates two more rate hikes coming this year
As expected, the Federal Reserve announced Wednesday that it is increasing the federal funds rate for the first time in 2018. Earlier this year, observers placed the likelihood of the Fed increasing rates by 25 basis points at the end of its March meeting at more than 75%. And Wednesday, that’s just what the Fed did.
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Wells Fargo board shakeup continues: Longest-serving directors set to retire

Four board members will retire next month
Four members of Wells Fargo’s board of directors, including its three longest-serving directors, will retire next month as the bank continues to clean up from its troubles of the last 18 months. On the way out are John Chen, Lloyd Dean, and Enrique Hernandez, each of which has served on the Wells Fargo board for at least 10 years, along with Federico Peña.
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