One man's meat

Article Abstract:

The signs are that US interest rates may not be cut following a speech by the chairman of the Federal Reserve where he argued that economic growth is stronger than expected. This has affected the bond market which had foreseen a cut in short-term interest rates. Salomon Brothers foresees lower interest rates in summer 1995, and sees inflationary pressures as being lessened. US monetary policy has been as restrictive since short-term rates of interest are above the growth of gross domestic product in money terms.

---

Dove-like noises

Article Abstract:

US bond and equity markets have performed well following a report by Alan Greenspan, chairman of the Federal Reserve, to Congress. Greenspan sees US economic growth as slowing with risks from inflation receding. There may be no need for further rises in interest rates, and rates could even fall. Data on economic performance has to provide evidence of a slowdown in growth, otherwise interest rates will be raised again, and they are low in real terms given the stage of the economic cycle.

---

On a knife-edge

Article Abstract:

Financial markets foresee a slowdown in US economic expansion with continued low-inflation. This would mean that US interest rates are close to their peak. There is a debate as to the meaning of economic statistics when they are released, and this has an impact on financial markets. There is agreement on a slowdown in growth, but disagreement on the extent of this slowdown. Some analysts forecast a rise in interest rates of 0.5% at the end of April 1995 or start of May 1995.

Similar abstracts:

• Abstracts: When more is harder. Taking a long view
• Abstracts: Upside risks. On course. UK inflation: question marks
• Abstracts: UK economy: voter-hostile. Looking forward to a better year. Barings collapse should not obscure other worries

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.