NAIRU is an acronym in economics that stands for the non-accelerating inflation rate of unemployment. Learn why it’s a key indicator for Fed decision-making.
While the overall number of 5.3 million seasonally existing homes sales was impressive, growing participation from first-time buyers is far more important for the health of housing.
As the Federal Reserve approaches lift-off from the zero lower bound, it is important to note that this rate hike cycle will be unique in ways most investors may not appreciate.
It appears options on European equities are (rightfully) reflecting investor concern about the near-term volatility associated with a possible Greek exit from the European Union.
For years, PIMCO has closely monitored and researched the evolution of China and its macroeconomic impact on the global financial markets. A key component of this evolution and resulting influence is the increasing accessibility of China’s financial markets to global investors.
Although many observers were comforted by the market-friendly outcome of last week’s FOMC meeting, the Fed will likely aim to avoid soothing the market too much.
Investors who monitor inflation had been eyeing the third week of June for some time: A pivotal Fed meeting, the May U.S. Consumer Price Index (CPI) report and a 30-year TIPS (Treasury Inflation-Protected Securities) auction were all scheduled to occur within a 23-hour window. All three events had potential ramifications for TIPS investors.
This week’s Fed meeting is important not because the Fed will actually change its monetary policy – it won’t – but because the statement and press conference will be scrutinized intensely for hints about when the Fed will begin hiking interest rates.
Jun 12, 2015
Without higher wage growth, the recovery in the UK will become increasingly difficult to sustain, and inflation will remain stubbornly low.
Economic and Market Commentary
At this point, the evidence is close to overwhelming that the Federal Reserve will embark on a tightening cycle this year.