Tag: central bank
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Investors Skeptical of Fed’s Inflation Plan Despite Projected Interest Rate Hikes
Investors are showing skepticism towards the Federal Reserve’s (Fed) plans to raise U.S. interest rates by approximately one percent and maintain them until at least the end of 2023. This sentiment is reflected in the trading patterns observed in the Fed Funds Futures Market on the Chicago Mercantile Exchange, indicating a belief that the actual…
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Exploring the Impact of Derivatives on the U.K. Bond Market Turmoil
Recent financial turbulence in the U.K. bond market has been attributed to the use of derivatives and leverage by investors, according to a video analysis by the Wall Street Journal. After the British government announced tax cuts aimed at economic growth, a sell-off in government bonds ensued, which was exacerbated by derivative contracts such as…