Found 42 article(s) for author 'Interest Rates'

Harvard’s Rogoff Says Next Global Crisis to Come From China

Harvard’s Rogoff Says Next Global Crisis to Come From China. Kenneth Rogoff, September 12, 2018, Video, “Harvard Professor Kenneth Rogoff discusses the risks posed by emerging markets and warns that the next global crisis may potentially come from China. He speaks on “Bloomberg Surveillance.” (Source: Bloomberg).Link


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‘Excessively High’ Equity Prices Are Biggest Risk

‘Excessively High’ Equity Prices Are Biggest Risk.  Martin Feldstein, August 24, 2018, Video, “Martin Feldstein, National Bureau of Economic Research chairman emeritus and a Harvard University economist, discusses the outlook for Federal Reserve monetary policy with Bloomberg’s Mike McKee at the Fed’s annual symposium in Jackson Hole, Wyoming.Link

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The Fed Should Raise Rates, but Not the Ones You’re Thinking

The Fed Should Raise Rates, but Not the Ones You’re Thinking. Jason Furman, August 20, 2018, Opinion, “The Federal Reserve has kept rates too low for too long. I’m not referring to interest rates. It’s high time for the Fed to raise countercyclical capital-buffer rates, which govern the amount of extra equity and cash banks are supposed to hold in good times. Increasing the capital buffer would reduce the risk of financial instability, set a precedent for sound macroeconomic management, and build up a bigger cushion for the next downturn.Link

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Save Low Interest for a Rainy Day

Save Low Interest for a Rainy Day. Martin Feldstein, July 26, 2018, Opinion, “President Trump told a national television audience last week that he disapproves of the Federal Reserve’s decision to continue raising short-term interest rates. He later repeated his concern in a series of tweets. In complaining publicly about the Fed, Mr. Trump is breaking decades of presidential precedent, and he is wrong on the substance. The Fed actually is behind the curve in normalizing short-term interest rates, and it should now raise the federal-funds rate at least four times a year.Link

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Too-Tight Fed Policy Greater Risk Than Inflation

Too-Tight Fed Policy Greater Risk Than Inflation. Lawrence Summers, July 1, 2018, Video, “Former U.S. Treasury Secretary Lawrence Summers said Federal Reserve interest-rate hikes that slow the nearly decade-long expansion are a greater risk to the economy than inflation. “Is the strategy one of relying on the Phillips curve and trying to preempt inflation, or is the strategy one of trying to let the economy grow as much as possible and respond to inflation problems as they arise,” Summers said in an interview Wednesday on Bloomberg Television. “I would very much favor the second.”Link

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Interest Rate Conundrums in the 21st Century

Interest Rate Conundrums in the 21st Century. Samuel Hanson, June 13, 2018, Paper, “A large literature argues that long-term nominal interest rates react far more to high-frequency (daily or monthly) movements in short-term rates than is predicted by the standard expectations hypothesis. We find that, since 2000, this high-frequency sensitivity has grown even stronger in U.S. data. By contrast, the association between low-frequency changes (at 6- or 12-month horizons) in short- and long-term rates, which was equally strong before 2000, has weakened substantially. As a result, “conundrums”—defined as 6- or 12-month periods in which short and long rates move in opposite directions—have become increasingly common.Link

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Trump And China Biggest Risks To Global Economy

Trump And China Biggest Risks To Global Economy. Kenneth Rogoff, January 24, 2018, Video, “The global economy is projected to grow at a stronger pace this year than the last, but that’s not without risks, according to Harvard Economist Kenneth Rogoff. And “one of them is coming to Davos.” The International Monetary Fund recently revised its global growth projections upward for 2018 after nine years of downgrades. But this outlook is subject to risks, he told BloombergQuint on the sidelines of the World Economic Forum at Davos, Switzerland. Besides U.S. President Donald Trump, risks coming in from China and a faster-than-expected pace of policy rate hikes by global central banks could jeopardise the “economic calm”.” Link


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US economy is in great shape, but very fragile

US economy is in great shape, but very fragile. Martin Feldstein, January 19, 2018, Video, “In a sea of bulls, one bear has emerged: Harvard University professor Martin Feldstein said on Friday that rising interest rates could send stocks into a downward spiral.  In March, the Federal Reserve is expected to announce its policy rate hike outlook for 2018. In September, Fed officials predicted it would raise rates three times in 2018 and twice more in 2019.” Link


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