The credit score you need to get the best rate on every kind of loan

The better your credit score, the better interest rate you can get on all types of loans, says Ted Rossman, a credit industry analyst for CreditCards.com. “Besides your net worth, your credit score is probably the most important number in your financial life [and] your credit score has a major effect on your net worth. ” Read more: The credit score you need to get the best deal on a cash-back credit cardPrivate student loan: 750When you’re borrowing federal direct student loans as an undergradua


The better your credit score, the better interest rate you can get on all types of loans, says Ted Rossman, a credit industry analyst for CreditCards.com. “Besides your net worth, your credit score is probably the most important number in your financial life [and] your credit score has a major effect on your net worth. ” Read more: The credit score you need to get the best deal on a cash-back credit cardPrivate student loan: 750When you’re borrowing federal direct student loans as an undergradua
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Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: myelle lansat, ivana pino
Keywords: news, cnbc, companies, need, card, student, best, rate, cashback, credit, kind, loan, interest, score


The credit score you need to get the best rate on every kind of loan

If you’re considering taking out any type of loan, you should be monitoring your credit score. The better your credit score, the better interest rate you can get on all types of loans, says Ted Rossman, a credit industry analyst for CreditCards.com. Lenders use your score to gauge your creditworthiness, or how likely you may be to pay back what you owe. That affects whether you get a loan in the first place and what kind of interest rate you’re offered. “A good credit score can save you a ton of money in the long run,” says Rossman. “Besides your net worth, your credit score is probably the most important number in your financial life [and] your credit score has a major effect on your net worth. ” There are different scoring models and ranges for credit scores, but most lenders use FICO scores, which range from 300 to 850. Different loans have different qualifying credit scores, but to nab any lender’s best rate, you’ll generally need at least a score in the 700s, which falls in the middle of the “good” range in FICO’s scoring model.

Graphic preview FICO breakdown Factors that impact your credit score Social chart title kiersten schmidt/grow FICO

Here’s what score to aim for to get a lender’s best rates on different kinds of loans.

Auto loan: 720

Most auto lenders use FICO’s auto score, which looks specifically at your creditworthiness for car loans. It uses a wider scoring range of 250-900. If your credit score is 720 or higher on that scale, you’ll qualify for the best super-prime (excellent) rate for a car loan, says credit expert Gerri Detweiler. For example, if your score is 700, or “good,” you can qualify for 6% on $29,620 loan (the average new car loan amount) paid over 60 months with a monthly payment of $572 and $4,701 in interest. But if your FICO score is 720 or above, you can qualify for 4.6% on a new car with a lower monthly payment of $554, saving you $18 each month and $1,078 over the life of the loan. Read more: This is the credit score you need to get the best rate on a car loan

Cash back rewards card: 740

About half, 49%, of Americans with a credit card have a cash-back card, making it the most popular type of rewards card. A credit score of 740 or above gives you a “slam dunk” chance to qualify for a top cash-back rewards card, says Rossman. If your credit score is 650 or lower, however, you can still be approved for a cash-back rewards card like the Apple card, for instance, but your credit limit may be lower and your interest rate may be higher, says credit expert John Ulzheimer, who has worked for FICO and Equifax. To make cash-back cards worthwhile, you have to pay your bills in full and avoid interest rates, adds Rossman. For example, if your credit score is 650 and you put $1,000 on a cash-back card with a high interest rate of 20% without paying off the balance immediately, you’d pay $200 in interest. Even if you have 2% cash-back savings on that card — so, a savings of $20 on $1,000 worth of purchases — you’d end up $180 behind. Read more: The credit score you need to get the best deal on a cash-back credit card

Private student loan: 750

When you’re borrowing federal direct student loans as an undergraduate, your credit score doesn’t matter. But if you need to take out private student loans, as about 14% of undergraduates do, lenders look at your credit score and credit history. You’ll need a credit score of at least 750 to get the best rate on a private student loan, says Betsy Mayotte, president of The Institute of Student Loan Advisors. That’s currently about 3%. You may still be able to qualify for a loan with a score as low as 650, but your interest rate will be much higher — in the range of 8% or 9%, and it can go as high as 14%. Read more: The credit score you need for the best rate on a private student loan

Mortgage: 760


Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: myelle lansat, ivana pino
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Another Asian central bank cuts interest rates — analysts say the region’s not done easing yet

Indonesia’s surprise interest rate cut is the latest in a wave of monetary policy easing in Asia, and analysts say central banks in the region have to ease monetary policy further as growth threatens to stall. Bank Indonesia on Thursday cut its key policy rate by 25 basis points to 5.5% to support growth amid an increasingly fragile global economy. A total of 17 out of 19 economists polled by Reuters had expected the central bank to keep policy steady in August after last month’s easing. A lower


Indonesia’s surprise interest rate cut is the latest in a wave of monetary policy easing in Asia, and analysts say central banks in the region have to ease monetary policy further as growth threatens to stall. Bank Indonesia on Thursday cut its key policy rate by 25 basis points to 5.5% to support growth amid an increasingly fragile global economy. A total of 17 out of 19 economists polled by Reuters had expected the central bank to keep policy steady in August after last month’s easing. A lower
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Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: yen nee lee
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Another Asian central bank cuts interest rates — analysts say the region's not done easing yet

Indonesia’s surprise interest rate cut is the latest in a wave of monetary policy easing in Asia, and analysts say central banks in the region have to ease monetary policy further as growth threatens to stall.

Bank Indonesia on Thursday cut its key policy rate by 25 basis points to 5.5% to support growth amid an increasingly fragile global economy. A total of 17 out of 19 economists polled by Reuters had expected the central bank to keep policy steady in August after last month’s easing.

Perry Warjiyo, Indonesia’s central bank governor, told CNBC on Friday there’s room to cut interest rates this time because inflation for the year is expected to remain within its target range of 2.5% to 4.5%. That will help Indonesia to maintain its growth momentum at a time when the ongoing tariff fight between the U.S. and China has held back global economic activity, he explained.

A lower interest rate environment generally encourages businesses and consumers to spend more, which boost the economy but could cause inflation to rise. Prices rising too much and too quickly are harmful for the economy, so central banks typically adjust monetary policies to keep inflation in check.

“This is a preemptive move to support our growth momentum and to anticipate the possibility of downward risks on the global economic outlook going forward,” Warjiyo told CNBC’s “Street Signs.”

The central bank expects Indonesia’s economy to grow between 5% and 5.4% this year. Last year, the country — Southeast Asia’s largest economy — grew by 5.17%.


Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: yen nee lee
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The inverted yield curve is doing something weird to mortgage rates

The inverted yield curve isn’t just spooking people over a possible recession – it’s doing weird things to mortgage rates, too. The gap isn’t big of course, as we’ve got a flat to inverted yield curve, but the traditional relationship holds.” And that’s precisely what is so interesting — that flat to inverted yield curve. In the past, an inverted yield curve has signaled an impending recession. “People want variable rates at the beginning of a Fed rate-cutting cycle, and lenders generally would


The inverted yield curve isn’t just spooking people over a possible recession – it’s doing weird things to mortgage rates, too. The gap isn’t big of course, as we’ve got a flat to inverted yield curve, but the traditional relationship holds.” And that’s precisely what is so interesting — that flat to inverted yield curve. In the past, an inverted yield curve has signaled an impending recession. “People want variable rates at the beginning of a Fed rate-cutting cycle, and lenders generally would
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Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: diana olick
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The inverted yield curve is doing something weird to mortgage rates

The inverted yield curve isn’t just spooking people over a possible recession – it’s doing weird things to mortgage rates, too.

Traditionally, adjustable-rate mortgages, or ARMs, offer lower interest rates than fixed-rate loans, because they are slightly riskier, and borrowers don’t want to pay more for more risk. ARMs can carry a fixed rate for five, seven or 10 years, and most today require some principal payment as well. No matter what the length of the fixed-rate term, they are all amortized over 30 years, so the payments will be relatively comparable to fixed-rate loans.

It is therefore very odd to suddenly see ARMs showing higher interest rates than the traditional 30-year fixed, which is what Bankrate.com is currently showing for average purchase mortgage rates. Refinance rates are still lower for ARMs.

So what’s going on? First, ARM rates are all over the place lender to lender because they are a very small percentage of new loan originations today, around 6% of total mortgage application volume, according to the Mortgage Bankers Association.

“The averages you see on the site are based on what quotes have been posted to the site, so small and inconsistent sample size on the ARMs,” said Greg McBride, chief financial analyst at Bankrate.com. “Our weekly national survey on the other hand, does show what we’d expect to see – ARM rates lower than fixed. The gap isn’t big of course, as we’ve got a flat to inverted yield curve, but the traditional relationship holds.”

And that’s precisely what is so interesting — that flat to inverted yield curve. The gap between ARMs and fixed-rate loans is now really small because of the inverted yield curve, which, without getting too technical, is a rare scenario where long-term interest rates suddenly fall below short-term interest rates. In the past, an inverted yield curve has signaled an impending recession.

“Longer-term rates (like the 30-year mortgage) are now equal to or lower than one-year rates (like the indexes used with most ARMs),” explained Guy Cecala, publisher and CEO of Inside Mortgage Finance. “Bad time to get an ARM.”

Of course we are looking at averages here, and every borrower has a different financial scenario – credit score, net worth, loan down payment, etc. – and will therefore be offered a different rate. And of course rates vary depending on the lender, especially when it comes to ARMs.

“Rates are all over the place. Some lenders want/need the variable cash flows to offset fixed-rate exposure,” said Matthew Graham, chief operating officer of Mortgage News Daily. “People want variable rates at the beginning of a Fed rate-cutting cycle, and lenders generally would prefer fixed rates of return when rates are declining.”


Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: diana olick
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There is enough economic data for the Fed to warrant a rate cut, Jim Cramer says

CNBC’s Jim Cramer on Thursday insisted that there is enough economic data that warrant the Federal Reserve to “take preemptive action here and cut interest rates.” “In that case, the Fed needs to cut rates as insurance, bringing our short-term interest rates closer to the rest of the world’s.” “One reason we’re in this position is that the Fed tightened too aggressively late last year,” Cramer said. In July, the Federal Reserve instituted a quarter-point interest rate cut to a target range of 2%


CNBC’s Jim Cramer on Thursday insisted that there is enough economic data that warrant the Federal Reserve to “take preemptive action here and cut interest rates.” “In that case, the Fed needs to cut rates as insurance, bringing our short-term interest rates closer to the rest of the world’s.” “One reason we’re in this position is that the Fed tightened too aggressively late last year,” Cramer said. In July, the Federal Reserve instituted a quarter-point interest rate cut to a target range of 2%
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Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: tyler clifford
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There is enough economic data for the Fed to warrant a rate cut, Jim Cramer says

CNBC’s Jim Cramer on Thursday insisted that there is enough economic data that warrant the Federal Reserve to “take preemptive action here and cut interest rates.”

The comments come a day prior to a speech Fed Chairman Jerome Powell is expected to deliver at an annual meeting of central bankers and economists in Jackson Hole, Wyoming on Friday.

“The economy may be in good shape now, but if we keep getting more and more tariffs it could deteriorate,” the “Mad Money” host said. “In that case, the Fed needs to cut rates as insurance, bringing our short-term interest rates closer to the rest of the world’s.”

In the face of a global economic slowdown, the American consumer remains strong, Cramer said pointing to the low unemployment rate in the country and sales growth at large retailers like Target and Walmart. Still, there’s more to the U.S. economy than spending, he added.

Furthermore, Cramer said challenges in Europe, particularly in British, French and German economies, could begin to bleed into the United States. Germany’s government bond yields are negative, a situation where issuers of debt are paid to borrow.

“Can we shrug off this worldwide weakness? I wouldn’t bet on it if I were the Fed,” the host said. “Now we have a global slowdown where the United States seems like the rare exception—the Fed should make sure it stays that way.”

While the retail giants are doing well, Cramer noted that troubled department stores are expected to cut a lot of jobs in the coming future. Boeing’s 737 Max issues could put a dent in U.S. GDP growth, the host said. Low mortgage rates should boost housing, but homebuilder Toll Brothers revealed that demand for new houses dropped more than 3% in its latest quarter.

Business has also slowed down in lumber, natural gas, autos, rail traffic and freight costs, Cramer said.

“There isn’t a commodity I follow that’s going up in price, unless you count gold,” he said. “Some of that’s because the auto market is in rough shape and lots of the stuff goes into cars.”

President Donald Trump, who planned a series of new tariffs on Chinese imports to go into effect Sept. 1 and Dec. 15, this week ordered the independent Fed to slash the benchmark interest rate by 100 basis points.

“One reason we’re in this position is that the Fed tightened too aggressively late last year,” Cramer said. “Given all the pessimism and fear that the president’s errant tweets instill, it makes a ton of sense for Jay Powell to give the economy some leeway here.”

In July, the Federal Reserve instituted a quarter-point interest rate cut to a target range of 2% to 2.5%. It marked the first interest rate reduction since the financial crisis more than a decade ago.

Investors want to see the central bank change monetary policy to allow for cheaper borrowing and boost business investing.

“You could easily argue that there’s enough good here to offset the bad. Honestly, I’m not going disagree with that,” Cramer said, “but I’ve done a ton of work on the trade war itself … and I think it would be nuts to get your hopes up about a deal any time soon.”


Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: tyler clifford
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Here’s why Trump wants to buy Greenland

President Donald Trump has floated the idea of buying Greenland multiple times. Yet Trump’s interest in Greenland is just the latest indication of the island’s increasing geopolitical importance. Greenland, which is home to nearly 58,000 people, is the largest island in the world, and 80% of its 811,000 square miles are ice-capped. Denmark has “publicly expressed concern about China’s interest in Greenland,” a Pentagon report warned earlier this year. The U.S. and Greenland have had an agreement


President Donald Trump has floated the idea of buying Greenland multiple times. Yet Trump’s interest in Greenland is just the latest indication of the island’s increasing geopolitical importance. Greenland, which is home to nearly 58,000 people, is the largest island in the world, and 80% of its 811,000 square miles are ice-capped. Denmark has “publicly expressed concern about China’s interest in Greenland,” a Pentagon report warned earlier this year. The U.S. and Greenland have had an agreement
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Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: jordan mcdonald
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Here's why Trump wants to buy Greenland

Homes are seen against the backdrop of mountains on July 28, 2013 in Nuuk, Greenland.

President Donald Trump has floated the idea of buying Greenland multiple times. Danish Prime Minister Mette Frederiksen has called the notion “absurd.” It has triggered a diplomatic row of sorts.

Yet Trump’s interest in Greenland is just the latest indication of the island’s increasing geopolitical importance. It is even drawing the eye of China.

Greenland’s strategic value is linked tightly to new North Atlantic shipping lanes opening up due to melting polar ice caps. The new lanes have dramatically decreased maritime trade travel times, which generally includes traveling through the Panama or Suez canals to circumnavigate the world.

Greenland, which is home to nearly 58,000 people, is the largest island in the world, and 80% of its 811,000 square miles are ice-capped. The island’s residents are Danish, but they have governed by self-rule since 1979.

Greenland’s largest economic drivers are fishing and tourism, but the island has drawn rising interest due to its vast natural resources, including coal, zinc, copper, iron ore and rare minerals. There have been expeditions to assess the extent of the nation’s resources, but the true quantity is unknown.

China, which is embroiled in a trade battle with the U.S., previously showed interest in developing a “Polar Silk Road” of trade through the North Atlantic shipping lanes. China proposed building new airports and mining facilities on Greenland in 2018, but eventually withdrew its bid.

“If [China were to] have a significant investment in a country that is so strategically important for so many countries, they would have influence there,” said Michael Sfraga, director of the Polar Institute at the Wilson Center.

“If you invest a lot in a small island country, you could have a lot of sway there.”

Denmark has “publicly expressed concern about China’s interest in Greenland,” a Pentagon report warned earlier this year.

“Civilian research could support a strengthened Chinese military presence in the Arctic Ocean, which could include deploying submarines to the region as a deterrent against nuclear attacks,” the report said.

Greenland is also in an advantageous location for the U.S. armed forces. The U.S. and Greenland have had an agreement since World War II to house American military assets on the island.

Thule Air Base, America’s northernmost Air Force base, has operated since 1943 in Greenland and has a ballistic missile early warning system and satellite tracking system.

Trump’s administration is not the first to make an inquiry about buying the island. President Harry Truman expressed desire to acquire the island in 1946 for $100 million in gold, and earlier attempts to buy the island stretch back to 1867.

While the world’s most powerful nations are looking to get a leg up in the North Atlantic and Arctic regions, experts caution that there could be a dire impact on the area.

“There are economic opportunities similar to Greenland across the Arctic,” said Heather A. Conley, senior vice president for Europe, Eurasia and the Arctic at the Center for Strategic & International Studies.

The region is home to “some of the largest iron ore and zinc mines in the world,” she said, but “there is a cost to the exploration, a cost to the environment and the people who live in the Arctic and Greenland.”


Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: jordan mcdonald
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Trump praises Germany’s negative yields but doesn’t mention that its bond sale failed

Wanting to emulate the European banking system, which has choked on negative rates, is not well thought-out,” he said. There was no demand for 30-year paper at negative interest rates. A real investor can’t make pension payments based on negative interest rates,” he said. The German auction comes during a month when rates have fallen sharply and German yields plumbed deeper into negative territory. About a third of the world’s trade-able bonds now have negative yields.


Wanting to emulate the European banking system, which has choked on negative rates, is not well thought-out,” he said. There was no demand for 30-year paper at negative interest rates. A real investor can’t make pension payments based on negative interest rates,” he said. The German auction comes during a month when rates have fallen sharply and German yields plumbed deeper into negative territory. About a third of the world’s trade-able bonds now have negative yields.
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Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: patti domm
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Trump praises Germany's negative yields but doesn't mention that its bond sale failed

President Donald Trump answers questions from reporters as he meets with Romania’s President Klaus Iohannis in the Oval Office of the White House in Washington, August 20, 2019. Kevin Lamarque | Reuters

President Donald Trump lauded Germany’s ability to sell bonds with no interest Wednesday, but he didn’t mention that Germany failed to sell more than half of what it brought to auction. The German government sold 869 million euros of 30-year bonds with a negative yield, for the first time ever, adding to the world’s growing $15 trillion in existing negative yielding debt. The bund, set to mature in 2050, has a zero coupon, meaning it pays no interest. Germany offered 2 million euros worth of 30-year bunds, and investors were willing to buy less than half of it, with a yield of minus 0.11%. Trump said Germany was able to get investors to pay it for its debt, while the U.S. is a “more important” credit but must pay interest. “WHERE IS THE FEDERAL RESERVE?” Trump asked in the tweet, in his latest criticism of the Fed and Fed Chairman Jerome Powell.

“It remains to be seen whether this is the beginning of some push back on the part of investors to this insanity of negative rates. We’ll have to see for now,” said Peter Boockvar, chief investment strategist at Bleakley Advisory Group. “‘People said ‘I can’t buy this,’ so that’s why they sold less than half of what they were hoping for … They were hoping to sell 2 billion euros worth. That’s why we call it a failed auction.” Boockvar said Trump should take a harder look at Europe, where the European Central Bank is expected to soon resort to cutting rates to even more negative levels and other forms of asset purchase stimulus. “He should look at their bank stocks. Wanting to emulate the European banking system, which has choked on negative rates, is not well thought-out,” he said. Ian Lyngen, head of U.S. rates at BMO, said the German government was forced to buy the remaining bonds itself Wednesday, a pattern that is common for Berlin. “It was technically an uncovered auction, which means the German government needed to buy a reasonable portion of it,” said Lyngen. Andy Brenner of National Alliance said Germany has held failed auctions in the past but that this was the worst. “This is the most significant I’ve seen in terms of a failed 30-year. For the Bundesbank to take 60% is unprecedented. There was no demand for 30-year paper at negative interest rates. They only could sell about 40% of it. A real investor can’t make pension payments based on negative interest rates,” he said. It is the negative yields and shockingly low rates elsewhere in the world that have been sending investors into the U.S. bond market in a hunt for safe investments with a yield. As a result, U.S. Treasury yields, which move opposite price, have fallen sharply, making loans cheaper for American businesses and consumers, including on home mortgages. The German auction comes during a month when rates have fallen sharply and German yields plumbed deeper into negative territory. U.S. yields also fell into record territory, with the U.S. 30-year reaching a record low of 1.91% last week. About a third of the world’s trade-able bonds now have negative yields.


Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: patti domm
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Kyle Bass says US interest rates will follow the rest of the world to zero — ‘This is insane’

Central banks are just getting started with monetary easing, hedge fund manager Kyle Bass said, predicting U.S. interest rates will keep falling and follow global interest rates all the way down to zero. All the money is going to come here,” Bass, founder and chief investment officer of Hayman Capital Management, told CNBC’s David Faber on Tuesday. Bass’ comments come as several central banks around the world have implemented stimulative policies to the point where around $15 trillion of global


Central banks are just getting started with monetary easing, hedge fund manager Kyle Bass said, predicting U.S. interest rates will keep falling and follow global interest rates all the way down to zero. All the money is going to come here,” Bass, founder and chief investment officer of Hayman Capital Management, told CNBC’s David Faber on Tuesday. Bass’ comments come as several central banks around the world have implemented stimulative policies to the point where around $15 trillion of global
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Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: fred imbert
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Kyle Bass says US interest rates will follow the rest of the world to zero — 'This is insane'

Central banks are just getting started with monetary easing, hedge fund manager Kyle Bass said, predicting U.S. interest rates will keep falling and follow global interest rates all the way down to zero.

“We’re the only country that has an integer in front of our bond yields. We have 90% of the world’s investment-grade debt. We actually have rule of law and we have a decent economy. All the money is going to come here,” Bass, founder and chief investment officer of Hayman Capital Management, told CNBC’s David Faber on Tuesday.

Bass’ comments come as several central banks around the world have implemented stimulative policies to the point where around $15 trillion of global debt trades with a negative rate. Germany and France’s respective 10-year yields are in negative territory along with Japan’s benchmark rate. China has also implemented stimulative measures to mitigate slowing economic growth.

“This is insane. The Japanese are going to keep going. The Chinese print money like it’s a national pastime today. Europe is going to restart QE,” Bass said. “QE” refers to quantitative easing, a monetary stimulus tool used by central banks.

In the U.S., the Federal Reserve cut interest rates by 25 basis points last month, citing “global developments” and “muted inflation.” Market expectations for lower rates in September are also at 100%, according to the CME Group’s FedWatch tool.


Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: fred imbert
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Recession worries and other news affecting your money this week

The U.S. stock market fell for a third straight week last week, as the S&P 500 has slumped more than 4% since reaching an all-time high in late July. There were already signs the economy was slowing; that was why the Federal Reserve cut interest rates at its July meeting. This week, traders will get some additional context about that decision when the minutes from the Fed’s July meeting are released on Wednesday. What it means for you: The Fed’s goal in lowering interest rates is to encourage bu


The U.S. stock market fell for a third straight week last week, as the S&P 500 has slumped more than 4% since reaching an all-time high in late July. There were already signs the economy was slowing; that was why the Federal Reserve cut interest rates at its July meeting. This week, traders will get some additional context about that decision when the minutes from the Fed’s July meeting are released on Wednesday. What it means for you: The Fed’s goal in lowering interest rates is to encourage bu
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Recession worries and other news affecting your money this week

The U.S. stock market fell for a third straight week last week, as the S&P 500 has slumped more than 4% since reaching an all-time high in late July. At the heart of the recent market sell-off is concern among those on Wall Street about a possible U.S. economic recession. For the first time since December 2005, the yield on the 10-year Treasury note on Wednesday fell below the two-year rate, a phenomenon that’s been a reliable indicator for recessions in the past. There were already signs the economy was slowing; that was why the Federal Reserve cut interest rates at its July meeting. Fresh threats in the U.S.-China trade war have also added to concerns. This week, Wall Street will focus again on the Fed, along with a slew of reports on the housing market. Here’s how the news could affect you.

Clues about whether the Fed will cut rates again

What’s happening: Federal Reserve policymakers cut interest rates in July in an effort to stimulate economic growth amid signs of a slowdown. This week, traders will get some additional context about that decision when the minutes from the Fed’s July meeting are released on Wednesday. In addition, policymakers will convene Thursday through Saturday in Jackson Hole, Wyoming, for a symposium on the topic of monetary policy. Traders will monitor the discussions from this event for clues about the central bank’s next steps. Why it matters: When the yield on the 10-year Treasury note fell below that of the two-year security last week — what’s known as an inverted yield curve — that rattled market participants, because this phenomenon has preceded every recession since 1978. These recession fears also raise questions about how the Fed will respond. A majority of traders are betting that the central bank could cut interest rates at least three more times by year end. Central bankers convene for their next policy meeting in mid-September. What it means for you: The Fed’s goal in lowering interest rates is to encourage businesses and consumers to borrow more money. As traders try to predict what the Fed will do to support the record-setting current economic expansion, there’s likely to be more choppiness ahead in the stock market.

Economists expect mixed results on home sales in July

What’s happening: This week is a busy one for economic reports related to housing activity in July. Economists currently project that the pace of existing home sales picked up last month as compared with June, whereas new home sales slowed. Why it matters: Buying a home is the most expensive purchase most Americans will ever make. The Fed lowered interest rates to make it more attractive for consumers to borrow money, like taking out a mortgage. That said, it will take a few months to see if that rate cut — which happened at the end of July — has a meaningful impact on the housing market. Already, some homeowners have taken advantage of lower interest rates by refinancing their mortgages — there was a 37% spike in refinance activity one week earlier this month. But home-building activity fell for the third straight month. What it means for you: The housing market is a key component of gross domestic product, so traders will want to see if the Fed’s rate cut will help stimulate buying activity — or whether potential buyers could be spooked by the recession talk. If you’re a homeowner, you may want to check if it makes sense to refinance your loans. Shopping for a home? Mortgage rates have fallen to multiyear lows recently, though you still need to consider how much money you’ll need to put down to buy.

The bottom line


Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: anna-louise jackson
Keywords: news, cnbc, companies, cut, market, housing, worries, rates, affecting, recession, fed, fell, interest, traders, week, money


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US Treasury yields climb as recession fears ease

The yield on the 30-year Treasury bond, which hit new all-time lows last week, was also higher at 2.078%. On Saturday, China’s central bank unveiled a key interest rate reform to help drive borrowing costs lower for companies. U.S. central bank officials cut interest rates in July and indicated at the time that they’d be open to future easing if warranted. To be sure, investors see about a 74% chance of a quarter-point rate cut next month. A spell of weaker-than-expected data, agitation in U.S.-


The yield on the 30-year Treasury bond, which hit new all-time lows last week, was also higher at 2.078%. On Saturday, China’s central bank unveiled a key interest rate reform to help drive borrowing costs lower for companies. U.S. central bank officials cut interest rates in July and indicated at the time that they’d be open to future easing if warranted. To be sure, investors see about a 74% chance of a quarter-point rate cut next month. A spell of weaker-than-expected data, agitation in U.S.-
US Treasury yields climb as recession fears ease Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: thomas franck
Keywords: news, cnbc, companies, ease, climb, yields, yield, investors, rate, points, central, fears, recession, week, cut, interest, treasury


US Treasury yields climb as recession fears ease

U.S. government debt yields climbed on Monday as a more positive market and economic outlook goaded investors back into riskier assets.

The yield on the benchmark 10-year Treasury note rose 6 basis points to 1.6% while the rate on Treasurys maturing in two years rose 4 basis points to 1.519%. The yield on the 30-year Treasury bond, which hit new all-time lows last week, was also higher at 2.078%.

The spread between the 2-year Treasury yield and that of the 10-year inverted in intraday trading on Wednesday for the first time in over a decade, a sign many consider a reliable recession indicator. That portion of the yield curve steepened on Monday and was last seen positive at 8 basis points.

Market focus is largely attuned to global central banks, as hopes of more stimulus from major economies such as China and Germany soothed investors’ concerns about a global economic downturn.

The Commerce Department was preparing to extend the length of a license that has allowed Huawei to continue business with the U.S. companies to service existing customers despite the White House’s concerns over national security, according to report from the Wall Street Journal and Reuters.

Huawei’s business in the U.S. is one of the most contentious points in the ongoing trade war with China.

On Saturday, China’s central bank unveiled a key interest rate reform to help drive borrowing costs lower for companies.

Meanwhile, market participants are likely to closely monitor the Federal Reserve’s Jackson Hole symposium this week in order to get greater clarity on the future path of interest rates. U.S. central bank officials cut interest rates in July and indicated at the time that they’d be open to future easing if warranted.

To be sure, investors see about a 74% chance of a quarter-point rate cut next month.

A spell of weaker-than-expected data, agitation in U.S.-China trade relations and elevated recession fears sent Treasury yields tumbling to multiyear lows last week. For his part, however, President Donald Trump said Sunday he doesn’t see a recession on the horizon in the U.S. after a volatile week for markets.

“I don’t think we’re having a recession,” Trump told reporters. “We’re doing tremendously well. Our consumers are rich. I gave a tremendous tax cut and they’re loaded up with money.”


Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: thomas franck
Keywords: news, cnbc, companies, ease, climb, yields, yield, investors, rate, points, central, fears, recession, week, cut, interest, treasury


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Home Depot is building up a big rally, says top technician

Last week’s wild market swings hit nearly everywhere on Wall Street. If you zoom out just a bit, are there any areas in the market that have provided a relative safe haven? As Cornerstone Macro Head of Technical Analysis Carter Worth pointed out Friday on CNBC’s “Options Action” that yes, there are. While other stocks have struggled, the current interest rate environment has helped keep this group afloat as it gets easier to borrow money to build or renovate housing. Even in periods where Home D


Last week’s wild market swings hit nearly everywhere on Wall Street. If you zoom out just a bit, are there any areas in the market that have provided a relative safe haven? As Cornerstone Macro Head of Technical Analysis Carter Worth pointed out Friday on CNBC’s “Options Action” that yes, there are. While other stocks have struggled, the current interest rate environment has helped keep this group afloat as it gets easier to borrow money to build or renovate housing. Even in periods where Home D
Home Depot is building up a big rally, says top technician Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: tyler bailey
Keywords: news, cnbc, companies, worth, homebuilder, rally, way, depot, technician, market, rate, weeks, big, thats, pointed, interest, building


Home Depot is building up a big rally, says top technician

Last week’s wild market swings hit nearly everywhere on Wall Street.

But how about over the last month? If you zoom out just a bit, are there any areas in the market that have provided a relative safe haven?

As Cornerstone Macro Head of Technical Analysis Carter Worth pointed out Friday on CNBC’s “Options Action” that yes, there are.

“We’re going to focus on Home Depot. We know that homebuilders, actually, as a group — while this is not a homebuilder — the actual builders have done nothing for three weeks, ” said Worth, “but that’s called outperformance compared to the market. That’s probably because of rates.”

While other stocks have struggled, the current interest rate environment has helped keep this group afloat as it gets easier to borrow money to build or renovate housing. Home Depot may not be a homebuilder in the way that a company like Lennar is, but in interest rate environments like this one, it’s a primary beneficiary of a consumer who’s willing to spend on their home.

Even in periods where Home Depot struggles, as Worth pointed out, the stock acts predictably during its sell-offs, which makes it easier to look for a bounce. He thinks another one is on the way.


Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: tyler bailey
Keywords: news, cnbc, companies, worth, homebuilder, rally, way, depot, technician, market, rate, weeks, big, thats, pointed, interest, building


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