Mortgage market conditions presented over the past two years have muted the effectiveness of the monetary policy tightening by saving $600 billion for homeowners, accounting for about 2% of personal consumption spending since 2022, according to a report by two Swiss Re Institute senior economists. “A dollar not spent on mortgage payments is a dollar
The maturing debt of “most” of these financing platforms had either been extended, restructured or replaced, Pan said, adding that financing costs for local government debt had fallen “significantly”. He also said the number of high-risk small and medium-sized banks had “nearly halved from the peak”. The central bank will aim to guide “reasonable” growth
By Michael S. Derby (Reuters) – Federal Reserve holdings of mortgage bonds play a “central” role in how monetary policy affects the economy’s momentum, academics wrote in a paper to be presented at a central bank research conference Saturday. The paper takes stock of how the Fed uses increases and contractions in its holdings of
The election prospects of former President Donald Trump are already having an effect on the markets. So-called Trump trades, a series of investments set to pay off should he get reelected, have started to unwind, according to a recent note from investment bank Macquarie. One of the most prominent of such trades has been a
Former US president Donald Trump looked eminently electable long before he became the target of an assassination attempt on July 13. His stock now appears to be even stronger as he prepares for the final stretch of a presidential race that is deepening bitter divisions in US society and is bound to deliver more surprises
By Lewis Krauskopf NEW YORK (Reuters) – The prospect of near-term interest rate cuts is bolstering the case for investors to remain bullish after a run in U.S. stocks that may soon be tested by upcoming corporate earnings reports and growing political uncertainty. Expectations that the Federal Reserve will kick off its long-awaited rate-cutting cycle
The yen has been on a downtrend despite the BOJ’s decision on March 19 to end eight years of negative interest rates. Natanael Ginting | Istock | Getty Images Japanese Finance Minister Shunichi Suzuki said on Monday there were some speculative moves in the currency market that did not reflect economic fundamentals, repeating his warning against excessive yen declines. “We will watch currency market developments