Tumbling Markets Imperil Tech, the Dollar, and Private Equity

Text size Japan has had to intervene to support the sliding yen for the first time since 1998, even as it tries to keep its interest rates low. Akio Kon/Bloomberg The world has been hooked on cheap money for years. Now we’re witnessing what withdrawal looks like. Lifting interest rates from nil has produced a … Read more

Why stock-market investors fear a full percentage point Fed rate hike would ‘unnerve’ Wall Street

With both U.S. stocks and bonds under pressure on Tuesday, some on Wall Street argue that investors are underestimating the possibility that the Fed might deliver a surprise 100 basis-point interest rate hike at the close of its two-day policy meeting on Wednesday. While fed-funds futures traders overwhelmingly anticipate a hike of 75 basis points, … Read more

Buy I Bonds Now at 9.6%. A New Rate Comes in November.

Text size The rate on I bonds hit a record 9.6% for bonds purchased starting in May and continuing through the end of October. Dreamstime One of the best current deals in the bond market—Treasury Series I savings bonds—is likely to get less attractive in November when a new rate on the popular investments is … Read more

Can the Fed tame inflation without crushing the stock market? What investors need to know.

The Federal Reserve isn’t trying to slam the stock market as it rapidly raises interest rates in its bid to slow inflation still running red hot — but investors need to be prepared for more pain and volatility because policy makers aren’t going to be cowed by a deepening selloff, investors and strategists said. “I … Read more

Inflation May Have Slowed in August. That May Not Be Good News.

Text size Markets have been waiting for a clearer indication that inflation is coming down from its highest point in four decades. Michael M. Santiago/Getty Images Inflation is expected to have slowed down in August. Don’t breathe a sigh of relief yet, experts say. Economists are predicting the consumer price index—a key inflation metric—to have … Read more

Inflation Could Be Harder to Tame Than the Fed Anticipates

Text size Another 75-basis-point hike in the federal-funds target is looking very, very likely. Ting Shen/Bloomberg Market participants returned from their summer holidays apparently undaunted by the consistent and persistent message from central bank officials that short-term policy interest rates must be lifted significantly further to bring inflation to heel. U.S. stocks broke their three-week … Read more

Opinion: Good news for retirees and retirement savers — inflation may be working in your favor

Retirees and those seeking secure income got two items of very good news this week, though you may only have heard about one. Meanwhile, your ability to earn a guaranteed rate of return on risk-free investments, regardless of what happens to inflation, actually went up. So-called TIPS bonds, Treasury bonds protected against inflation, fell slightly … Read more

Stocks Could Keep Rising If the Fed Shows Restraint

Text size As the market rebounds, speculative stocks are stirring. For proof, consider Cathie Wood’s ARK Innovation ETF, up about 40% since mid-June. David Swanson/Reuters/Alamy What bear market? Stocks continued their summer rally this past week as better-than-expected inflation results helped lead to a 3.3% gain in the S&P 500 index, its fourth consecutive weekly … Read more

Investors are obsessed with size of Fed’s next rate hike. Here’s what they’re missing.

Debate has been simmering over whether Federal Reserve policy makers will raise the fed-funds rate by three-quarters of a percentage point later this month, as they did in June, or step up their inflation-fighting campaign with a full point hike —- something that hasn’t been seen in the past 40 years.Friday’s economic data, which included … Read more

Why Is the Stock Market Down Today? Dow Sinks as Inflation Soars.

Text size The Federal Reserve under Jerome Powell is expected to continue raising interest rates. Olivier Douliery/AFP via Getty Images The stock market was sinking after inflation came in hotter-than-expected in June.  The Dow Jones Industrial Average has declined 334.83 points, or 1.1%, while the S&P 500 has fallen 1.4%, and the Nasdaq Composite futures … Read more