Schwab US TIPS ETF™
FOMC: We Are Not Declaring a Victory on Inflation
The FOMC’s June statement was released on June 13, and the outlook for inflation remained upbeat.
Why Did the US Federal Reserve Turn Hawkish at Its June Meeting?
As expected, the Federal Reserve increased the interest rate by 25 basis points after its June meeting, which concluded on June 13.
How Could High Inflation Affect the Fed?
During the Fed’s May meeting, the inflation (TIP) target was described as “symmetric,” suggesting that the 2% target would not be used to initiate any dramatic changes to US monetary policy.
Why May’s Inflation Was Just Hot Enough
On June 12, the US Bureau of Labor Statistics reported that US consumer prices rose 0.2% in May, adding to the 0.2% increase seen in April.
Why the FOMC Isn’t Confident about Sustained Inflation Growth
The FOMC’s May meeting minutes indicated that some of its members had turned bearish on inflation (TIP).
Bond Yields Fall after April Inflation Data Release
US bond market investors were relieved after the US Bureau of Labor Statistics’ April report, published May 10, indicated a lower-than-expected inflation growth rate.
How April’s Inflation Data Relieved Markets
On May 10, the Bureau of Labor Statistics reported that US consumer prices rose 0.2% in April.
Is the US Economy on Track to Meet the 2018 GDP Projections?
In its most recent SEP release, the Fed upgraded its GDP growth outlook for 2018 by 0.2% to 2.7%, compared to the 2.5% growth outlook in December 2017.
Could there be a 4th Rate Hike in the Cards?
The Bureau of Economic Analysis defines PCE (personal consumption expenditure) as the value of goods and services purchased by, or on behalf of, US residents.
Why Rising Inflation Failed to Raise Long-Term Yields
The primary reason cited by the FOMC for holding off on interest rate hikes since 2016 was lagging inflation growth.
US Job Openings Still Near Highs
The BLS released the “Job Openings and Labor Turnover Survey” for February on April 13.
Why Bond Yields Weren’t Affected by the March Inflation Report
US bond market investors are constantly concerned about inflation.
Why Rising Inflation Could Pose a Threat to Equity Markets
On April 11, market participants expected a volatile session after the US inflation report, but, to their surprise, Donald Trump’s tweet earlier in the day about Syria and missiles pushed markets lower.
Why March’s Inflation Numbers Could Pressure the Fed
The US Bureau of Labor Statistics has reported that US consumer prices fell 0.1% in March.
FOMC Members Are More Confident about Inflation
The March FOMC meeting minutes indicated that the staff and FOMC members turned bullish on inflation.
FOMC on the Economic Situation: A Strong US Economy
In the March meeting minutes, the FOMC staff review of the economy was stronger than the review presented at the January meeting.
Why the Fed Expects Unemployment to Fall to 3.6%
Over the last 12 months, unemployment levels have fallen to a 17-year low of 4.1%.
What’s the Fed’s View on Inflation Growth?
The FOMC’s March statement was released on Wednesday, March 21, and the outlook for the closely watched inflation remained muted.
Why Did the Fed Upgrade Its GDP Forecast for 2018?
In the latest SEP release, the Fed upgraded its GDP growth outlook for 2018 by 0.2% to 2.7%.
A Strengthening US Economy and a Cautious Fed
In the first policy meeting under new Fed chair Jerome Powell, the FOMC (Federal Open Market Committee) increased the interest rate 0.25%.
Why Odds of 4th Rate Hike Fell after February Inflation Report
The US Bureau of Labor Statistics reported that US consumer prices increased marginally in February.
Why FOMC Members’ View on Inflation Is Bad for Equity Markets
FOMC members have cited several factors that could increase inflation (VTIP) in the medium term.
Rising Inflation Could Add to Market Anxiety
Core inflation, which excludes volatile items like food and energy, surged to 0.34% month-over-month in January.
Why Did the Consumer Price Index Rise in December?
According to the December CPI report released by the U.S. Bureau of Labor Statistics on January 12, consumer prices in December increased 0.1%.
The Curious Case of Low Inflation in 2017
The last statement from the US Fed, which was released with its recent rate hike decision, cited lower levels of inflation but hopes that the inflation target could be achieved in 2018.
Will US Unemployment Rate Fall below 4% in 2017?
A lower unemployment rate is one of the key objectives of the Fed. In 2017, the unemployment rate fell, reaching 4.1% in its latest November reading.
The Primary Cause of Yield Curve Flattening
Interest rates and inflation The pace of interest rate hikes and inflation rate growth have a profound influence on the US yield curve. The US Fed has been communicating its intent to increase interest rates from the current ultra-low level to a target rate of 2.5% over the next few years. The conditions required for […]
The FOMC’s Outlook for the US Economy
As per economic projections prepared by the FOMC, US real GDP is expected to improve in the final quarter of this year.
Chart in Focus: The Consumer Price Index Rose in October
The Fed is expected to increase the target funds rate by 0.25% at its December meeting.
Why a December Rate Hike Shouldn’t Be Taken for Granted
Not all members of the FOMC, according to the minutes of the meeting, were on the same page with respect to a December interest rate hike.
Why FOMC’s Raphael Bostic Is Not Happy with Low Inflation Explanations
Bostic dealt with various reasons that have been cited as reasons for the lower level of inflation—even questioning the common ones.
FOMC’s James Bullard Has Three Questions for US Monetary Policy
Bullard said that the current growth rate in the US economy is likely to remain consistent with recent quarterly growth—near the 2% mark.
Why FOMC’s John Williams Sees No Impact of Balance Sheet Unwinding on Markets
In the long run, Williams said it would be difficult to predict how markets would react to the Fed’s balance sheet unwinding program.
Do Markets Agree with Janet Yellen on Low Inflation?
In her post-meeting press conference, US Federal Reserve Chair Janet Yellen seemed less worried than expected about the current state of US inflation.
Is the Uptick in August Inflation Enough for a Fed Hike in December?
Slow US inflation growth has been a concern for the US Fed and was one of the key reasons that the Fed raised interest rates only twice in 2017.
Will the Sudden Rise in Inflation Change the US Fed’s Outlook?
The consumer price inflation (CPI) data reported on Thursday indicated an increase of 0.4% in August. The year-over-year rate improved from 1.7% to 1.9% for August.
Here’s Why the US Inflation Rate Is Troubling the Fed
In its latest monetary policy statement, the Fed admitted it would take longer than expected for inflation to reach its 2.0% target.
Will the Fed Repeat Its Taper Tantrum Mistakes?
In this cycle of expansion after the great recession, the Fed has started the process of monetary tightening.
Why Inflation Remains a Huge Concern for FOMC Members
Members of the FOMC (Federal Open Market Committee) attributed the recent slowdown in inflation growth to idiosyncratic factors.
Why Fed’s Yellen Feels Gradual Rate Hikes Are Warranted
The tone of Yellen’s responses before the committee confirmed that the Fed is set to stay its course on monetary tightening, leading to policy normalization.
Why Minneapolis’s Fed President Voted Against a Rate Hike
In an essay published by Minneapolis’s Federal Reserve president, Neel Kashkari, after he voted against a rate hike in the Federal Open Market Committee’s (or FOMC) June 2017 meeting, he explained why he dissented.
Why Philadelphia’s Fed President Supports Another Rate Hike
In a recent interview with The Financial Times, the hawkish president of the Philadelphia Federal Reserve said that the Fed’s balance sheet’s unwinding could begin in September 2017.
Why Chicago’s Evans Sees Moderate Risks to Financial Stability
Chicago’s Federal Reserve president, Charles L. Evans, recently spoke at a Money Marketeers of New York University event about monetary policy challenges in a new inflation environment.
St. Louis’s Bullard Thinks Rebalancing Will Take 5 Years
At the Illinois Bankers Association’s annual conference in Nashville, organized on June 23, 2017, St. Louis’s Federal Reserve president, James Bullard, sounded dovish about the US economy.
Why Cleveland’s Fed President Worries about Another Recession
Loretta J. Mester, the president and CEO of the Cleveland Federal Reserve, spoke at the 2017 Policy Summit on Housing, Human Capital, and Inequality held on June 23, 2017.
Is a Flattening Yield Curve a Sign of an Impending Recession?
Yields in the shorter timeframe such as the two-year yield (SHY) and T-notes (SCHO) are rising more than the ten-year or the 30-year (TLT) yields.
How to Beat Inflation?
We see inflation-linked bonds such as US Treasury Inflation-Protected Securities (TIPS) as a valuable hedge against inflation. We also like inflation-linked debt in the Eurozone and Japan as a potential substitute for nominal bonds. Market Realist: inflation-linked bonds could turn out to be a better choice Inflation-linked bonds (TIP) provide a hedge against inflation by […]
Will Treasury Inflation-Protected Securities Be a Game-Changer?
According to Bloomberg, Treasury Inflation-Protected Securities (or TIPS) have generated a year-to-date return of 6.3% compared to 4.7% by the broad Treasury market.