Here’s what to do if you can’t pay that surprise tax bill by April 15

Also, interest generally accrues on the amount owed, which is separate from the penalty. That interest rate, which can change quarterly, is currently 6 percent. Of course, the idea isn’t to file your return and ignore the tax debt. While the IRS will send you a bill for the balance, you also can explore setting up a payment plan. “You designate how much you’ll pay per month, and as long as it’s reasonable, my experience is that in most cases the IRS will accept it,” Warnkin said.


Also, interest generally accrues on the amount owed, which is separate from the penalty. That interest rate, which can change quarterly, is currently 6 percent. Of course, the idea isn’t to file your return and ignore the tax debt. While the IRS will send you a bill for the balance, you also can explore setting up a payment plan. “You designate how much you’ll pay per month, and as long as it’s reasonable, my experience is that in most cases the IRS will accept it,” Warnkin said.
Here’s what to do if you can’t pay that surprise tax bill by April 15 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: sarah obrien, aitor diago, moment, getty images
Keywords: news, cnbc, companies, month, interest, cant, surprise, pay, 15, warnkin, plan, penalty, heres, tax, bill, rate, really, irs


Here's what to do if you can't pay that surprise tax bill by April 15

Also, interest generally accrues on the amount owed, which is separate from the penalty. That interest rate, which can change quarterly, is currently 6 percent.

Of course, the idea isn’t to file your return and ignore the tax debt. While the IRS will send you a bill for the balance, you also can explore setting up a payment plan.

“You designate how much you’ll pay per month, and as long as it’s reasonable, my experience is that in most cases the IRS will accept it,” Warnkin said.

More from Smart Tax Planning:

Why secret cash payments to your nanny could backfire

Getting zero back from the IRS might be a good thing

Five ways to jump-start your tax return

Depending on the length and terms of your plan, along with your income, there could be a fee to set it up. And, you’d still be on the hook for the late-payment penalty, although at a lower rate: 0.25 percent per month that the installment plan is in effect, instead of 0.5 percent, according to the IRS.

Warnkin said that if you face a tax bill this time around, it’s an indication that the same situation could crop up a year from now unless you take steps to prevent it.

“That’s where it gets really tough, because the best way is to increase your withholding from your paycheck, but that reduces take-home pay, which makes it harder to pay back what you owe,” Warnkin said. “But, you really should do something so you don’t get into an endless cycle.”


Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: sarah obrien, aitor diago, moment, getty images
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We’re about to find out why the Federal Reserve did its policy U-turn which sent markets higher

Investors will learn more Wednesday about why Federal Reserve officials did an apparent U-turn in policy three weeks ago when they signaled a much easier stance regarding interest rates. Minutes from the Jan. 29-30 meeting of the policymaking Federal Open Market Committee will be released at 2 p.m. At the meeting, the committee voted not to increase the benchmark interest rate, but signaled a “patient” approach to future hikes. While a minutes release might seem an otherwise mundane dig through


Investors will learn more Wednesday about why Federal Reserve officials did an apparent U-turn in policy three weeks ago when they signaled a much easier stance regarding interest rates. Minutes from the Jan. 29-30 meeting of the policymaking Federal Open Market Committee will be released at 2 p.m. At the meeting, the committee voted not to increase the benchmark interest rate, but signaled a “patient” approach to future hikes. While a minutes release might seem an otherwise mundane dig through
We’re about to find out why the Federal Reserve did its policy U-turn which sent markets higher Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: jeff cox, saul loeb, afp, getty images
Keywords: news, cnbc, companies, sent, policy, interest, rate, markets, powell, signaled, meeting, uturn, monetary, federal, fed, reserve, world, communication, higher


We're about to find out why the Federal Reserve did its policy U-turn which sent markets higher

Investors will learn more Wednesday about why Federal Reserve officials did an apparent U-turn in policy three weeks ago when they signaled a much easier stance regarding interest rates.

Minutes from the Jan. 29-30 meeting of the policymaking Federal Open Market Committee will be released at 2 p.m. ET. At the meeting, the committee voted not to increase the benchmark interest rate, but signaled a “patient” approach to future hikes. Fed Chairman Jerome Powell said afterward that it would take a shift in data to convince him that more moves would be needed.

Market participants will be digging closely through the meeting summary for clues on how the Fed views its interest rate framework, the assessment on the economy, and the plans it has for the $3.8 trillion in bonds it is holding on its balance sheet.

While a minutes release might seem an otherwise mundane dig through monetary policy, the Powell Fed has put a special emphasis on communication. The chairman now will hold news conferences after each meeting to explain Fed actions to the public, and he has kept up a busy schedule meeting with lawmakers on Capitol Hill.

“More communication is better,” Bill English, a 20-year Fed veteran and current professor at the Yale School of Management, said in an interview. “Things can be misunderstood and communication can go badly, but the response to that should be more communication and trying to clarify, and not communicating less. The world of a generation ago when the Fed didn’t communicate much about monetary policy at all isn’t actually a very desirable world for doing monetary policy.”

Fed officials have been pretty clear lately about their intentions on interest rates. Less certain is what the central bank will do with the balance sheet.


Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: jeff cox, saul loeb, afp, getty images
Keywords: news, cnbc, companies, sent, policy, interest, rate, markets, powell, signaled, meeting, uturn, monetary, federal, fed, reserve, world, communication, higher


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Homebuilder sentiment rises as interest rates stay in check

The nation’s homebuilders are feeling better about the state of their industry as lower interest rates boost consumer confidence. Sentiment fell at the end of last year, largely because mortgage rates jumped in the fall, hurting affordability. Newly built homes come at a price premium to existing homes, so higher interest rates can have an outsize effect on the new construction market. Interest rates then fell sharply at the end of the year and have remained lower this year. “Ongoing reduction i


The nation’s homebuilders are feeling better about the state of their industry as lower interest rates boost consumer confidence. Sentiment fell at the end of last year, largely because mortgage rates jumped in the fall, hurting affordability. Newly built homes come at a price premium to existing homes, so higher interest rates can have an outsize effect on the new construction market. Interest rates then fell sharply at the end of the year and have remained lower this year. “Ongoing reduction i
Homebuilder sentiment rises as interest rates stay in check Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: diana olick, lisa rizzolo, david paul morris, bloomberg, getty images
Keywords: news, cnbc, companies, rises, rates, newly, lower, stay, sentiment, mortgage, check, interest, market, homebuilder, sales, housing, points, homes


Homebuilder sentiment rises as interest rates stay in check

The nation’s homebuilders are feeling better about the state of their industry as lower interest rates boost consumer confidence.

Builder sentiment rose 4 points to 62 in February, according to a monthly survey from the National Association of Home Builders/Wells Fargo Housing Market Index. The survey stood at 71 last February. Anything above 50 on the index is considered positive.

Sentiment fell at the end of last year, largely because mortgage rates jumped in the fall, hurting affordability. Newly built homes come at a price premium to existing homes, so higher interest rates can have an outsize effect on the new construction market. Interest rates then fell sharply at the end of the year and have remained lower this year.

“Ongoing reduction in mortgage rates in recent weeks coupled with continued strength in the job market are helping to fuel builder sentiment,” said NAHB Chairman Randy Noel. “In the aftermath of the fall slowdown, many builders are reporting positive expectations for the spring selling season.”

Of the index’s three components, buyer traffic moved up 4 points to 48. Current sales conditions rose 3 points to 67, and sales expectations over the next six months increased 5 points to 68. February marks the second month where all three of the indexes showed gains.

Sales of newly built homes have been hard to read, due to the recent government shutdown and delays in reporting from the U.S. Census. Several sources noted a sharp decline in sales toward the end of the year, with a slight improvement in January. Mortgage applications to purchase newly built homes were flat in January compared with January 2018, according to the Mortgage Bankers Association. The cost to build homes continues to be a concern.

“Rising costs stemming from excessive regulations, a dearth of buildable lots, a persistent labor shortage and tariffs on lumber and other key building materials continue to make it increasingly difficult to produce housing at affordable price points,” said NAHB Chief Economist Robert Dietz.

Housing starts and builder permits data have not been reported since last year, but they have been running well below demand and historical averages since the housing crash. While single-family starts are slowly rising, there continues to be a critical shortage of homes for sale, especially at lower, more affordable prices.

Builders are still focused most on the move-up sector of the housing market, as the costs of land, labor and materials continue to run high, making it more difficult financially to build lower-priced homes.


Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: diana olick, lisa rizzolo, david paul morris, bloomberg, getty images
Keywords: news, cnbc, companies, rises, rates, newly, lower, stay, sentiment, mortgage, check, interest, market, homebuilder, sales, housing, points, homes


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Asia has ‘mitigating factors’ to counter a global growth slowdown, says bank CEO

Global growth is expected to slow in the coming months, but Asian economies could hold up reasonably well, thanks to several “mitigating factors,” according to the chief executive of Southeast Asia’s largest bank. Gupta noted that Asia is still projected to grow at 5.5 percent to 6 percent this year despite the overall softer global environment. Several central banks in Asia — including those in China, India and Australia — have lowered interest rates or indicated the intention to do so in the c


Global growth is expected to slow in the coming months, but Asian economies could hold up reasonably well, thanks to several “mitigating factors,” according to the chief executive of Southeast Asia’s largest bank. Gupta noted that Asia is still projected to grow at 5.5 percent to 6 percent this year despite the overall softer global environment. Several central banks in Asia — including those in China, India and Australia — have lowered interest rates or indicated the intention to do so in the c
Asia has ‘mitigating factors’ to counter a global growth slowdown, says bank CEO Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-18  Authors: yen nee lee
Keywords: news, cnbc, companies, interest, bank, mitigating, ceo, think, told, rates, growth, overall, global, months, factors, slowdown, coming, counter, asia


Asia has 'mitigating factors' to counter a global growth slowdown, says bank CEO

Global growth is expected to slow in the coming months, but Asian economies could hold up reasonably well, thanks to several “mitigating factors,” according to the chief executive of Southeast Asia’s largest bank.

“The overall macro-economy will be a tad bit slower, but I do think that there are some mitigating factors: Monetary policies are getting looser, I think there are some fiscal stimulus coming down the pipe,” Piyush Gupta, CEO of Singapore’s DBS Group Holdings, told CNBC’s “Capital Connection” on Monday.

Gupta noted that Asia is still projected to grow at 5.5 percent to 6 percent this year despite the overall softer global environment. Several central banks in Asia — including those in China, India and Australia — have lowered interest rates or indicated the intention to do so in the coming months in an attempt to shore up economic growth, the CEO added.

In addition, the U.S. Federal Reserve holding back from raising interest rates further is good news for Asia, said Steve Cochrane, chief Asia Pacific economist at Moody’s Analytics.

“It means that there’s a little less pressure on foreign exchange,” he told CNBC’s “Squawk Box” on Monday.


Company: cnbc, Activity: cnbc, Date: 2019-02-18  Authors: yen nee lee
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Allianz fourth-quarter net profit up 19 percent, in line with expectations

German insurer Allianz said on Friday that net profit rose 19 percent in the fourth quarter from a year earlier, in line with expectations. Net profit attributable to shareholders of 1.697 billion euros ($1.92 billion) compares with the 1.715 billion euro profit forecast by analysts in a Reuters poll and is up from 1.427 billion euros a year ago. Speaking to CNBC’s “Squawk Box Europe” on Friday, Allianz CFO Giulio Terzariol said: “In our performance in 2018 we have been very capable (of managing


German insurer Allianz said on Friday that net profit rose 19 percent in the fourth quarter from a year earlier, in line with expectations. Net profit attributable to shareholders of 1.697 billion euros ($1.92 billion) compares with the 1.715 billion euro profit forecast by analysts in a Reuters poll and is up from 1.427 billion euros a year ago. Speaking to CNBC’s “Squawk Box Europe” on Friday, Allianz CFO Giulio Terzariol said: “In our performance in 2018 we have been very capable (of managing
Allianz fourth-quarter net profit up 19 percent, in line with expectations Cached Page below :
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Keywords: news, cnbc, companies, euros, profit, allianz, terzariol, net, europe, line, fourthquarter, 19, weve, billion, interest, unadjustedbecause, expectations, rates


Allianz fourth-quarter net profit up 19 percent, in line with expectations

German insurer Allianz said on Friday that net profit rose 19 percent in the fourth quarter from a year earlier, in line with expectations.

Net profit attributable to shareholders of 1.697 billion euros ($1.92 billion) compares with the 1.715 billion euro profit forecast by analysts in a Reuters poll and is up from 1.427 billion euros a year ago.

Speaking to CNBC’s “Squawk Box Europe” on Friday, Allianz CFO Giulio Terzariol said: “In our performance in 2018 we have been very capable (of managing) headwinds to achieve record results on most of our KPIs.”

He added that the bank expected the ECB to leave interest rates unadjusted.

“Because of the tension we might have – let’s say Italy and Brexit – and because of the economy we would expect interest rates to stay relatively flat in Europe, which is not necessarily an issue for us because we’ve been in this situation for a few years,” he said.


Company: cnbc, Activity: cnbc, Date: 2019-02-15  Authors: getty images
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Thailand property: Chinese buying interest has surged in recent years

Chinese investors have continued pouring their money into Thailand’s property sector even as the kingdom barrels toward an uncertain national election. Thailand will hold general elections on March 24, but Juwai CEO Carrie Law said the company hasn’t seen “a link between the Thai election and Chinese property buying.” Even though that recent coup was the second in less than a decade, the political upheaval did little to cool Thailand’s huge property increases. Chinese buyers make up 70 percent o


Chinese investors have continued pouring their money into Thailand’s property sector even as the kingdom barrels toward an uncertain national election. Thailand will hold general elections on March 24, but Juwai CEO Carrie Law said the company hasn’t seen “a link between the Thai election and Chinese property buying.” Even though that recent coup was the second in less than a decade, the political upheaval did little to cool Thailand’s huge property increases. Chinese buyers make up 70 percent o
Thailand property: Chinese buying interest has surged in recent years Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: huileng tan, prachanart viriyaraks, getty images
Keywords: news, cnbc, companies, property, interest, surged, buyers, international, thailands, thailand, buying, spot, chinese, told, started, growth, recent


Thailand property: Chinese buying interest has surged in recent years

Chinese investors have continued pouring their money into Thailand’s property sector even as the kingdom barrels toward an uncertain national election.

That underscores the Southeast Asian nation’s enduring popularity with the Chinese — tourists from Asia’s top economy have for years seen Thailand as a top spot for holidays. According to recent data from online Chinese real estate portal Juwai.com, Thailand was its most popular country when it comes to inquiries from potential real estate buyers in 2018 — climbing up from the sixth spot in 2016.

Thailand will hold general elections on March 24, but Juwai CEO Carrie Law said the company hasn’t seen “a link between the Thai election and Chinese property buying.”

“While the election is momentous for Thailand, most of the buyers we work with are unconcerned about the outcome,” she told CNBC.

Thailand’s economy has been powering ahead since its 2014 coup, reaching 3.9 percent GDP growth in 2017. That was its best in five years, but that growth is expected to slow a bit this year due to weaker global growth, the World Bank projected.

Even though that recent coup was the second in less than a decade, the political upheaval did little to cool Thailand’s huge property increases.

In fact, Sansiri — one of Thailand’s biggest developers — set up its international business unit in 2014 after seeing growing interest from foreign buyers, said Nanmanas Jiwattanakul, the company’s assistant executive vice president of international business development.

Chinese buyers make up 70 percent of Sansiri’s international sales, she said.

The development — not spurred by any marketing efforts — prompted the developer to set up showrooms in Thailand and overseas catering to such investors, she told CNBC.

“We started to drive (international sales) and also because we started seeing a number of foreign buyers in Thailand,” said Nanmanas.


Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: huileng tan, prachanart viriyaraks, getty images
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How compound interest works and how it can help you save money

Chances are, you’ve heard of the money term “compound interest,” but do you know how it really works? If not, you’re in the majority: 69 percent of Americans don’t understand it. That’s according to ValuePenguin, which asked 2,000 Americans if they could define key financial terms like credit score, net worth and compound interest, and shared the results with CNBC Make It. It’s an important concept to grasp. After all, compound interest can cause your wealth to snowball and help you save hundred


Chances are, you’ve heard of the money term “compound interest,” but do you know how it really works? If not, you’re in the majority: 69 percent of Americans don’t understand it. That’s according to ValuePenguin, which asked 2,000 Americans if they could define key financial terms like credit score, net worth and compound interest, and shared the results with CNBC Make It. It’s an important concept to grasp. After all, compound interest can cause your wealth to snowball and help you save hundred
How compound interest works and how it can help you save money Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: kathleen elkins
Keywords: news, cnbc, companies, help, worth, worksif, understand, valuepenguin, save, interest, wealth, youre, money, compound, americans, youve, works


How compound interest works and how it can help you save money

Chances are, you’ve heard of the money term “compound interest,” but do you know how it really works?

If not, you’re in the majority: 69 percent of Americans don’t understand it. That’s according to ValuePenguin, which asked 2,000 Americans if they could define key financial terms like credit score, net worth and compound interest, and shared the results with CNBC Make It.

It’s an important concept to grasp. After all, compound interest can cause your wealth to snowball and help you save hundreds of thousands or even millions of dollars.


Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: kathleen elkins
Keywords: news, cnbc, companies, help, worth, worksif, understand, valuepenguin, save, interest, wealth, youre, money, compound, americans, youve, works


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How compound interest works and how it can help you save money

Chances are, you’ve heard of the money term “compound interest,” but do you know how it really works? If not, you’re in the majority: 69 percent of Americans don’t understand it. That’s according to ValuePenguin, which asked 2,000 Americans if they could define key financial terms like credit score, net worth and compound interest, and shared the results with CNBC Make It. It’s an important concept to grasp. After all, compound interest can cause your wealth to snowball and help you save hundred


Chances are, you’ve heard of the money term “compound interest,” but do you know how it really works? If not, you’re in the majority: 69 percent of Americans don’t understand it. That’s according to ValuePenguin, which asked 2,000 Americans if they could define key financial terms like credit score, net worth and compound interest, and shared the results with CNBC Make It. It’s an important concept to grasp. After all, compound interest can cause your wealth to snowball and help you save hundred
How compound interest works and how it can help you save money Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: kathleen elkins
Keywords: news, cnbc, companies, help, worksif, works, compound, americans, interest, understand, valuepenguin, worth, youve, youre, money, wealth, save


How compound interest works and how it can help you save money

Chances are, you’ve heard of the money term “compound interest,” but do you know how it really works?

If not, you’re in the majority: 69 percent of Americans don’t understand it. That’s according to ValuePenguin, which asked 2,000 Americans if they could define key financial terms like credit score, net worth and compound interest, and shared the results with CNBC Make It.

It’s an important concept to grasp. After all, compound interest can cause your wealth to snowball and help you save hundreds of thousands or even millions of dollars.


Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: kathleen elkins
Keywords: news, cnbc, companies, help, worksif, works, compound, americans, interest, understand, valuepenguin, worth, youve, youre, money, wealth, save


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Housing market, while still risky, won’t be all bad for buyers in 2019

But with the housing market in transition, will they be able to find what they’re looking for? The dip in interest rates, combined with modest gains in home prices, have helped turn some parts of real estate into a buyer’s market – but one clouded by at least some uncertainty. However, it wasn’t just interest rates that caused buyers to pull back in 2018. “That’s going to be the myth in the housing market you are going to see play out in 2019. Richardson stated that one area where buyers and sel


But with the housing market in transition, will they be able to find what they’re looking for? The dip in interest rates, combined with modest gains in home prices, have helped turn some parts of real estate into a buyer’s market – but one clouded by at least some uncertainty. However, it wasn’t just interest rates that caused buyers to pull back in 2018. “That’s going to be the myth in the housing market you are going to see play out in 2019. Richardson stated that one area where buyers and sel
Housing market, while still risky, won’t be all bad for buyers in 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-10  Authors: erin barry, karl spencer, getty images
Keywords: news, cnbc, companies, risky, richardson, interest, going, 2019, sellers, bad, rates, housing, market, buyers, wont, technology, real, estate


Housing market, while still risky, won't be all bad for buyers in 2019

With spring on the way, many home buyers are starting their hunt for a new home. But with the housing market in transition, will they be able to find what they’re looking for?

Thus far this year, the 30-year-fixed has averaged 4.46 percent, down from 4.54 percent in 2018. The dip in interest rates, combined with modest gains in home prices, have helped turn some parts of real estate into a buyer’s market – but one clouded by at least some uncertainty.

“Going forward, it won’t be the record number of sales we saw in 2017, but we have seen mortgage rates come down considerably over the course of even the new year,” Nela Richardson of Edward Jones Investments and former chief economist at Redfin, told CNBC’s “On the Money” in an interview. “That is a good advantage for buyers.

However, it wasn’t just interest rates that caused buyers to pull back in 2018. Many home buyers couldn’t find a home that fit in their budget, and Richardson said that’s not likely to change this year.

“That’s going to be the myth in the housing market you are going to see play out in 2019. You’ll see reports that inventory is increasing, but it’s increasing at price points that are not affordable to millennials or first time buyers,” she said. “And that has been persistent for the last five years.”

Richardson stated that one area where buyers and sellers could see savings are in real estate agent commission fees.

“I understand the value of the real estate agent but there is a point where technology can improve and make that technology more efficient, lower cost and that is the ultimate hope for home buyers and sellers going into tomorrow,” she said. “But we’re not there yet.”


Company: cnbc, Activity: cnbc, Date: 2019-02-10  Authors: erin barry, karl spencer, getty images
Keywords: news, cnbc, companies, risky, richardson, interest, going, 2019, sellers, bad, rates, housing, market, buyers, wont, technology, real, estate


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Wells Fargo cuts rate hike forecast, bond yield targets

This month, the firm cut both its year-end Federal Reserve interest rate hike forecast and bond yield targets. However, the firm’s global head of interest rate strategy said the decision has little to do with an economic slowdown abroad. When the 2-year and 10-year Treasury yield invert, it historically points to impending economic troubles. Along with the Fed rate forecast change, Schumacher and his team lowered its year-end treasury yield targets. The expectation is now for the 2-Year Treasury


This month, the firm cut both its year-end Federal Reserve interest rate hike forecast and bond yield targets. However, the firm’s global head of interest rate strategy said the decision has little to do with an economic slowdown abroad. When the 2-year and 10-year Treasury yield invert, it historically points to impending economic troubles. Along with the Fed rate forecast change, Schumacher and his team lowered its year-end treasury yield targets. The expectation is now for the 2-Year Treasury
Wells Fargo cuts rate hike forecast, bond yield targets Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-10  Authors: stephanie landsman, brendan mcdermid, bukharova, getty images, artur widak, nurphoto, david a grogan
Keywords: news, cnbc, companies, schumacher, does, fargo, wells, hike, forecast, treasury, yearend, fed, rate, invert, cuts, interest, targets, bond, yield


Wells Fargo cuts rate hike forecast, bond yield targets

As bond yields fall on global growth fears, Wells Fargo is making some changes.

This month, the firm cut both its year-end Federal Reserve interest rate hike forecast and bond yield targets. However, the firm’s global head of interest rate strategy said the decision has little to do with an economic slowdown abroad.

“It boils down to the Fed,” Michael Schumacher said Thursday on CNBC’s “Futures Now.” “What does the Fed care about most? Does it care about European growth? Probably not a huge amount.”

Based on recent Fed commentary and Chairman Jerome Powell’s more dovish comments about the economy over the past few months, Schumacher said a readjustment of the firm’s expectations was necessary.

“It’s pretty difficult to call for the Fed to hike two or three times. We were at two. We debated quite a bit,” he said. “We can’t really allow for two. So, we’ll go with one rate hike for now for 2019.”

Schumacher, however, does not believe the move will create an ominous treasury yield inversion. When the 2-year and 10-year Treasury yield invert, it historically points to impending economic troubles.

“If there’s one more hike, would it cause the curve to invert? We doubt it,” he said. “The central banks have such massive portfolios. They’ve distorted those market rates. So even if the curve inverts, we think a recession is unlikely.”

He expected the sole hike of the year would come in the beginning of third quarter — which would likely be the last of the cycle. It’s in line with the results from CNBC’s latest Fed Survey which indicates the Wall Street is also predicting one rate hike.

Along with the Fed rate forecast change, Schumacher and his team lowered its year-end treasury yield targets.

The expectation is now for the 2-Year Treasury yield to end the year at 2.75% from 2.95% while the 10-Year Treasury yield dipped to 3.10 percent from 3.30 percent.

On Friday, they hit their lowest levels since February 1.


Company: cnbc, Activity: cnbc, Date: 2019-02-10  Authors: stephanie landsman, brendan mcdermid, bukharova, getty images, artur widak, nurphoto, david a grogan
Keywords: news, cnbc, companies, schumacher, does, fargo, wells, hike, forecast, treasury, yearend, fed, rate, invert, cuts, interest, targets, bond, yield


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