Wall Street: topsy-turvy
Article Abstract:
US investors have become more confident about interest rate policy and share prices rose following a correction in Jul 1996. Data on manufacturing industry shows a stronger economy than realised and there is renewed doubt about whether economic growth is slowing. The Open Market Committee has released minutes of a meeting in Jul 1996, and the minutes show that the committee was closer to raising interest rates than had been realised. This means that rates are more likely to be raised if strong growth appears likely.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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US: rates turning
Article Abstract:
Stephen Roach from Morgan Stanley sees a possible rise in world interest rates in 1997 as economic growth speeds up. The US economy is undergoing recovery and there is also evidence in Japan and Germany of recovery. Higher growth rates will push up inflation and this is occurring in the US where pay settlements are rising. The US government appears to be more concerned with unemployment than inflation which exacerbates the risk. Investors should thus be cautious when considering bonds.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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