Author: Author1

The Federal Reserve’s window to tinker with its bond-buying program may be narrowing, meaning there’s a risk that Treasury yields will climb faster than many predict.

At its final policy meeting of 2020, the U.S. central bank just decided not to tilt more purchases toward longer maturities — something that could’ve kept a lid on longer-term interest rates. And while the Fed didn’t rule out eventually making such a change, a healthier U.S. economy — possibly due to more fiscal stimulus if Democrats take control of the Senate after runoff elections on Jan. 5 — could make it harder for the central bank to justify, according to some investors.

The mere possibility that the Fed might act more overtly to anchor long-end borrowing costs at some point has helped cap yields at that part of the curve. It’s a big factor behind why the 10-year rate stayed below 1% this week even amid progress on stimulus talks and after the Fed’s decision to defer action. If that policy option were to disappear entirely, that could well provide scope for rates to move up. Read More

Travel-related stocks came under pressure on news of an infectious new coronavirus strain in the U.K., which triggered more severe lockdowns and travel restrictions across Europe.

Norwegian and Royal Caribbean cruise lines shares each dropped more than 9% in premarket trading. Delta Air Lines lost 8% in early trading. Shares of companies that would be hit by stricter lockdown measures fell, including Wynn Resorts and Gap.

The losses came even as lawmakers have reached an agreement on a $900 billion relief package, which would provide direct payments and jobless aid to struggling Americans. Read More

While the government continues to peddle the CPI fairy tale and the true cost of living (as measured by real-world inflationary indicators like the Chapwood Index) appears to be closer to 10%, instead of 2%, the middle and lower class are bearing the brunt of the pain.This was the topic of a new NPR piece that took a look at exactly why Americans were having trouble paying their expenses. What they found shouldn’t surprise anyone: incomes were being vastly outpaced by the cost of living. “An unexpected bill like that is what separates millions of Americans from financial disaster,” the piece says.

While some of this can be attributed to poor financial planning, some of it can also be attributed to an increasingly skewed playing field that’s being created as a result of monetary policy.

With at least two COVID-19 vaccines expected to receive federal approval in the U.S. within a matter of weeks, hopes for beating the coronavirus are looking up. Yet for millions of workers and businesses, the emerging immunizations also raise a host of questions, not the least of which is this: Can your employer require that you get vaccinated?