Latest news with #Federal Reserve
Bloomberg
3 hours ago
- Business
- Bloomberg
Bond Traders Boost Bearish Bets as US 30-Year Yields Eclipse 5%
A bearish tone is taking hold in the Treasury market amid worries over the risk of tariff-fueled inflation and increased government spending in some of the world's biggest economies. In JPMorgan Chase & Co.'s latest Treasury client survey, investors' net long positioning shrank to the smallest in six weeks. That coincides with selling pressure in US government debt, which picked up on Tuesday after June consumer-price data failed to assuage concerns over the impact of trade levies. In response, investors trimmed bets the Federal Reserve will cut interest rates as soon as September.
Yahoo
10 hours ago
- Business
- Yahoo
3 Large-Cap Value Funds to Buy on Growing Uncertainty Over Rate Cuts
The uncertainty over the timing of the next interest rate cut is making investors jittery. The Federal Reserve has suggested that it is in no rush to cut rates, as it has adopted a cautious approach. Policymakers are particularly concerned about rising inflation, which could be intensified by tariffs imposed by President Donald Trump. According to the minutes from the Fed's latest meeting, released last week, most officials are not inclined toward an immediate rate cut. This could keep markets volatile for a longer period. In such an unpredictable environment, investors may want to consider investing in large-cap value funds for safety. Three such funds are: Shelton Equity Income Investor EQTIX, Putnam Large Cap Value A PEYAX and Northern Income Equity NOIEX. The minutes of the Federal Reserve's latest meeting suggest that only a few officials believe that a rate cut might be appropriate as early as this month. Most officials are adopting a wait-and-watch stance, wary of potential inflation stemming from tariffs that are set to begin on Aug. 1. While the minutes acknowledge the inflation risk as 'considerable uncertainty,' most participants expect any impact to be minor or short-lived and don't see an urgent need for action. Meanwhile, Trump has been pressuring the Federal Reserve for immediate rate cuts and has even called for Chairman Jerome Powell's resignation, claiming that the delay in rate cuts is costing the U.S. economy hundreds of billions of dollars. Though some investors remain hopeful for a 25-basis-point cut in July due to signs of slowing inflation and a weakening job market, it appears unlikely the Fed will move forward with a cut at the upcoming FOMC meeting, raising the possibility of renewed market volatility. Also, stocks retreated on Friday after Trump announced a 35% tariff on Canada, one of the biggest trading partners of the United States, and threatened higher duties across the board. This reignited fears of a trade war after indexes hit new all-time highs earlier in the week. We've identified three large-cap value mutual funds that have given impressive annualized returns over 3-year and 5-year periods. These funds also hold a Zacks Mutual Fund Rank of #1 (Strong Buy), require an initial investment of no more than $5,000 and have a low expense ratio. The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money). Shelton Equity Income Investor fund seeks to achieve a high level of income and capital appreciation by investing primarily in income-producing U.S. equity securities. EQTIX invests primarily in securities that generate a relatively high level of dividend income and have the potential for capital appreciation. Shelton Equity Income Investor fund also invests at least 80% of its total assets in stocks. EQTIX's 3-year and 5-year annualized returns are 14.5% and 12.9%, respectively. Shelton Equity Income Investor fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.65%. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here. Putnam Large Cap Value A fund seeks current income. Capital growth is a secondary objective when consistent with seeking current income. PEYAX invests mainly in common stocks of U.S. companies, with a focus on value stocks that offer the potential for current income and capital growth. PEYAX's 3-year and 5-year annualized returns are 16.5% and 16.8%, respectively. Putnam Large Cap Value A fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.88%. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here. Northern Income Equity fund seeks to provide a high level of current income with long-term capital appreciation as a secondary objective. NOIEX's approach is to identify the securities of companies that generate high current yields and offer prospects for growth and possible capital appreciation. NOIEX's 3-year and 5-year annualized returns are 17.7% and 16.1%, respectively. Northern Income Equity fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.49%. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here. Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (EQTIX): Fund Analysis Report Get Your Free (PEYAX): Fund Analysis Report Get Your Free (NOIEX): Fund Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Bloomberg
10 hours ago
- Business
- Bloomberg
Fed's Collins Advocates Actively Patient Policy Approach
CC-Transcript 00:00Clearly uncertainty remains elevated, pulling together the many types of data and the analyses that my staff and I examine. My expectation is that tariffs will boost inflation over the second half of this year, while the extent of the increase remains uncertain. It seems likely that core PC inflation will be in the vicinity of 3%, perhaps by year's end before resuming its decline. And concerning the labour market side of our mandate. Tariffs should slow demand and hiring, but not necessarily by a large amount. Of course there are risks to this baseline outlook and I do not rule out scenarios with larger or more persistent effects from tariffs and ongoing economic uncertainty, or I don't rule out scenarios in which the effects are more muted. Calibrating appropriate policy in this context is challenging, but continued overall, solid economic conditions enable the Fed to take the time to carefully assess the wide range of incoming data. So in my view, what I call an actively patient approach to monetary policy remains appropriate at this time. For YouLive TV
Wall Street Journal
17 hours ago
- Business
- Wall Street Journal
Investors Are No Longer Bracing for a Recession
Concerns that President Trump's April "Liberation Day" tariffs could trigger a global recession have eased dramatically, according to Bank of America's latest survey of fund managers. Some key findings: A net 59% of investors polled in July said a recession was unlikely—a big flip from the net 42% who feared one in April. Investor sentiment is at its most bullish since February, driven by improving expectations for corporate profits. Some 42% of investors expect second-quarter company earnings will beat forecasts. Trade wars are still the biggest concern, with expectations for final U.S. tariff rates on other countries rising. Most expect the Federal Reserve to cut interest rates one or two times by year end.
Yahoo
20 hours ago
- Business
- Yahoo
Best money market account rates today, July 15, 2025 (Earn up to 4.41% APY)
Find out which banks are offering the top rates. Money market accounts (MMAs) can be a great place to store your cash if you're looking for a relatively high interest rate along with liquidity and flexibility. Unlike traditional savings accounts, MMAs typically offer better returns, and they may also provide check-writing privileges and debit card access. This makes these accounts ideal for holding long-term savings that you want to grow over time, but can still access when needed for certain purchases or bills. The national average interest rate for money market accounts is just 0.62%, according to the FDIC. However, the best money market account rates often pay above 4% APY — similar to the rates offered on high-yield savings accounts. Here is a look at today's highest money market account rates: Interested in earning the best possible interest rate on your savings balance? Here is a look at some of the best savings and money market account rates available today from our verified partners. This embedded content is not available in your region. Money market account rates have fluctuated significantly in recent years, largely due to changes in the Federal Reserve's target interest rate, known as the federal funds rate. In the wake of the 2008 financial crisis, for example, interest rates were kept extremely low to stimulate the economy. The Fed slashed the federal funds rate to near zero, which led to very low MMA rates. During this time, money market account rates were typically around 0.10% to 0.50%, with many accounts offering rates on the lower end of that range. Eventually, the Fed began raising interest rates gradually as the economy improved. This led to higher yields on savings products, including MMAs. However, in 2020, the COVID-19 pandemic led to a brief but sharp recession, and the Fed once again cut its benchmark rate to near zero to combat the economic fallout. This resulted in a sharp decline in MMA rates. But starting in 2022, the Fed embarked on a series of aggressive interest rate hikes to combat inflation. This led to historically high deposit rates across the board. By late 2023, money market account rates had risen substantially, with many accounts offering 4.00% or higher. Throughout 2024, MMA interest rates remained elevated, and it was possible to find accounts that paid well above 5% APY. Today, rates remain high by historical standards, though they've begun a downward trajectory following the Fed's most recent rate cuts later in late 2024. Today, online banks and credit unions tend to offer the highest rates. When comparing money market accounts, it's important to look beyond just the interest rate. Other factors, such as minimum balance requirements, fees, and withdrawal limits, can impact the total value you get from the account. For example, it's common for money market accounts to require a large minimum balance in order to earn the highest advertised rate — as much as $5,000 or more in some cases. Other accounts may charge monthly maintenance fees that can eat into your interest earnings. However, there are several MMAs available that offer competitive rates without any balance requirements, fees, or other restrictions. That's why it's important to shop around and compare accounts before making a decision. Additionally, ensure that the account you choose is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), which guarantees deposits up to $250,000 per institution, per depositor. Most money market accounts are federally insured, but it's important to double-check in the rare case the financial institution fails. Read more: Are money market accounts safe? By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Today, money market account rates are still quite high by historical standards. The best accounts provide over 4% APY, with the highest rate available today at 4.51% APY. The amount $10,000 will earn in a money market account depends on the annual percentage yield (APY) offered by the account, as well as how long you keep your money in the account. Let's say you choose to deposit $10,000 in a money market account that earns 4% APY with monthly compounding interest. After one year, you would earn $407.44 in interest, for a total balance of $10,407.44. Money market accounts are generally safe and flexible savings options, but like any other financial product, they come with some downsides, too. For instance, some MMAs require a high minimum balance to open the account or to earn the advertised APY. Failing to maintain that minimum balance can result in penalties or reduced interest rates. Additionally, money market rates are variable, which means they can change at any time at the bank's discretions. If interest rates drop, so will your account APY, which can make future earnings unpredictable compared to fixed-rate products like CDs. This embedded content is not available in your region.
