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Fed May Need to Buy Other Assets to Replenish Tool Kit, Official Says

Fed May Need to Buy Other Assets to Replenish Tool Kit, Official Says

The Federal Reserve may need to buy assets other than government bonds to counter the next downturn, a Fed official said Friday, a dramatic suggestion meant to bolster the central bank’s increasingly depleted tool kit for fighting a downturn. In coming years, “vision and boldness will be needed by all policymakers if we have to consider how policy

Take Five: Credit crunch at time of rock-bottom rates?

Take Five: Credit crunch at time of rock-bottom rates?

(Reuters) - 1)CROSSING OVER? Is it possible we may see a wave of corporate defaults at a time when interest rates are at record lows and falling? In Europe, where many rates are below 0%, signs of stress are emerging as the coronavirus outbreak hits companies’ bottom lines. An index of credit default swaps on 75 high-risk European companies compiled

Traders bet U.S. Fed will slash interest rates in coming months

Traders bet U.S. Fed will slash interest rates in coming months

CHICAGO (Reuters) - Futures traders are betting the Federal Reserve will slash U.S. interest rates in coming months to blunt damage to the world’s largest economy, as governments and companies move to control the spread of the new coronavirus by limiting travel and public gatherings. Prices of futures contracts tied to the Fed’s key overnight lending

Bond yields slide to record lows, stocks succumb to virus fears

Bond yields slide to record lows, stocks succumb to virus fears

NEW YORK (Reuters) - Yields on U.S. Treasuries plunged to historic lows on Friday as fear the coronavirus outbreak will slam the global economy drove investors to snap up risk-adverse assets and dump equities, overshadowing data highlighting a strong U.S. labor market. The 10-year Treasury US10YT=RR yield fell to a record low of 0.69% as new milestones

Traders bet Fed will slash rates to zero by April

Traders bet Fed will slash rates to zero by April

CHICAGO (Reuters) - Futures traders are betting the Federal Reserve will slash U.S. interest rates to near zero by April, even as many doubted the central bank can do much to stop economic damage from the spread of the new coronavirus. With cases of the illness surpassing 100,000 globally, and stock prices continuing their slide, prices of futures

Trump says U.S. Fed should cut rates, stimulate economy

Trump says U.S. Fed should cut rates, stimulate economy

WASHINGTON (Reuters) - President Donald Trump said on Friday the Federal Reserve should cut U.S. interest rates and stimulate the economy, three days after the central bank slashed interest rates by half a percentage point in an emergency bid to blunt the economic effects of the coronavirus.

U.S. Fed to slash interest rates in coming months, traders bet

U.S. Fed to slash interest rates in coming months, traders bet

(Reuters) - Traders are betting the Federal Reserve will deliver another, bigger reduction in borrowing costs at its mid-March policy meeting, as worries about the spread of the new coronavirus trumped data showing robust hiring by U.S. employers last month. With cases of the sometimes deadly respiratory illness caused by the virus surpassing 100,000

Fed to cut rates again in March, but effectiveness challenged: Reuters poll

Fed to cut rates again in March, but effectiveness challenged: Reuters poll

(Reuters) - The Federal Reserve will cut U.S. interest rates by 25 basis points later this month but it is a close call, according to a Reuters poll of economists who have substantially raised their forecasts for the chances of a recession following the coronavirus outbreak. Those conclusions come after the Fed chopped interest rates by 50 basis points

Traders bet Fed will make another, bigger rate cut in mid-March

Traders bet Fed will make another, bigger rate cut in mid-March

(Reuters) - Traders of futures contracts tied to the Federal Reserve’s policy rate were betting Friday on another, even bigger reduction to borrowing costs at the U.S. central bank’s mid-March meeting. The Fed this week delivered an emergency half a percentage point rate cut to help shield the U.S. economy from the effects of the new coronavirus. Prices

World stocks succumb to virus fears, Treasury yields hit record lows

World stocks succumb to virus fears, Treasury yields hit record lows

LONDON (Reuters) - Global stock markets tumbled and government bonds rallied on Friday as disruptions to business from the spreading coronavirus epidemic worsened, stoking fears of a prolonged economic slowdown. European shares opened sharply lower, with travel stocks bearing the brunt. The pan-European STOXX 600 index was down 3.5% by midday in London,