December 4, 2023 | The Impact of rising rates in the Europen Union (EU) is apparent, as data consistently falls below estimates.
Why It Matters: To gauge the EU’s economy, there’s a need to focus on specific rates and regions.
Vulnerable to rate hikes, the Southern EU region offers early signs of broader effects. Source: Gavekal
August 28, 2023 | The U.S. 30 year mortgage rate soars to 7.57%, the highest in 20+ years. Why It Matters: The spread between mortgage rates and long-term U.S. bonds suggests if rates surged too quickly. Signs now? The quick sprint could lead to an upcoming slowdown. Source: Source Financial Advisors
...August 21, 2023 | Long-term U.S. interest rates soar to their highest levels since 2008.
Why It Matters: Rising rates can shift the landscape – as bonds become more appealing due to higher yields, money may flow out of equities, potentially shaking up the stock market.
Source: Source Financial Advisors
...August 14, 2023 | Curious why higher interest rates aren’t impacting the economy quicker? One word: Cash.
Why It Matters: Post-Covid U.S. businesses have been hoarding more cash than ever.
This cash cushion benefits from higher rates, counterbalancing rising financing costs.
Source: Gavekal
...June 5 2023 | The Fed’s inflation gauge just ticked ever-so-slightly higher. Why It Matters: Not the ideal scenario. We need inflation to keep trending downward. Otherwise, it’ll give the Fed reason to keep hiking rates. Source: Torsten Slok
...February 6, 2023| While both the Fed and European Central Bank (ECB) have raised interest rates, they’re on divergent paths. The Fed hiked rates slowly with a +0.25% rise, possibly approaching the end of its tightening journey, while the ECB faces on-going inflation challenges and is set to keep raising rates. Source: thedailyshot
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