federal reserve – Benefits Canada.com

The case for eventual inflation

mschmit — Mon, 30 Nov 2020 08:28:23 +0000

While inflation never materialized after the last financial crisis and the subsequent economic expansion, this time will be different, said Erik Weisman, portfolio manager and chief economist at MFS Investment Management, when speaking at the Canadian Investment Review’s Investment Innovation Conference in November. After the global financial crisis, quantitative easing didn’t generate inflation because the […]

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IMF head says global economy facing long climb to recovery

mschmit — Tue, 06 Oct 2020 04:34:36 +0000

The head of the International Monetary Fund says that the global economy has started on a long climb to stronger growth with prospects looking a little better than four months ago. IMF Managing Director Kristalina Georgieva said Tuesday that global economic activity suffered an unprecedented fall in the spring when 85 per cent of the […]

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Federal Reserve sees rates near zero at least through 2023

mschmit — Thu, 17 Sep 2020 03:52:35 +0000

The Federal Reserve expects to keep its benchmark interest rate pegged near zero at least through 2023 as it strives to accelerate economic growth and drive down the unemployment rate. The central bank also said Wednesday that it will seek to push inflation above two per cent annually. The Fed left its benchmark short-term rate […]

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Former Bank of Canada governor Mark Carney joins PIMCO global advisory board

mschmit — Thu, 17 Sep 2020 03:41:18 +0000

Former Bank of Canada governor Mark Carney is joining an advisory board for the Pacific Investment Management Co. PIMCO chief executive Emmanuel Roman says the California-based investment manager sought Carney for its global advisory board because of his extensive experience as an economist and central banker. The board he joins is comprised of seven members […]

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Macklem says central bankers must speak simply or risk losing public trust

mschmit — Fri, 28 Aug 2020 05:32:06 +0000

The head of the Bank of Canada made an international pitch to his fellow central bankers on Thursday to forge closer ties with average citizens to manage economic expectations through the pandemic, or risk losing public trust and face an existential crisis. Speaking remotely at an annual gathering usually hosted in Jackson Hole, Wyo., governor […]

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Fed: Rates to stay ultra low even after inflation picks up

mschmit — Fri, 28 Aug 2020 04:19:56 +0000

The Federal Reserve announced a significant change Thursday in how it manages interest rates by saying it plans to keep rates near zero even after inflation has exceeded the Fed’s two per cent target level. The change signifies that the Fed is prepared to tolerate a higher level of inflation than it generally has in […]

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Fed sees dim economic outlook as virus squeezes economy

mschmit — Thu, 30 Jul 2020 03:33:33 +0000

Federal Reserve Chair Jerome Powell warned Wednesday that the viral epidemic is endangering the modest economic recovery that followed a collapse in hiring and spending this spring. As a result, he said, the Fed plans to keep interest rates pinned near zero well into the future. That faltering economy, pressured by a resurgence of the […]

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Fed to keep providing aid and sees no rate hike through 2022

mschmit — Wed, 10 Jun 2020 10:46:43 +0000

Confronted with an economy gripped by recession and high unemployment, the Federal Reserve made clear Wednesday that it will keep supplying all the help it can by buying bonds to maintain low borrowing rates and forecasting no rate hike through 2022. The Fed has cut its benchmark short-term rate to near zero. Keeping its rate […]

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A 20-year treasury bond: Part of $2.99 trillion borrowing

mschmit — Wed, 06 May 2020 05:47:01 +0000

The U.S. Treasury Department is detailing how it plans to borrow a record-breaking $2.99 trillion in debt this quarter, which will include issuing a 20-year bond for the first time since 1986. The Treasury faces an unprecedented need for credit because of the trillions of dollars the government is spending to deal with the impact […]

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Economists agree: No quick rebound from recession is likely

mschmit — Thu, 30 Apr 2020 05:59:23 +0000

Devastated by the coronavirus, the U.S. economy is sinking. And the plunge is accelerating. Now, as some businesses in a few states start to trickle back to work, hopes are beginning to arise that the economy, damaged as it is, might be poised to rebound by the second half of the year. If more employees […]

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