Federal Reserve

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What Canadians Need To Know About The U.S. Fed's Rate Hike

The long-awaited liftoff is here: the U.S. Federal Reserve has announced they are raising the Federal Funds Target Rate to 0.5 per cent. It is the first time in seven years the Fed has increased their trend-setting interest rate, which they cut to 0 per cent on December 16, 2008. Markets had widely anticipated the move, with 81 per cent calling for a hike today. As the U.S. is the largest economy in the world, any change it makes reverberates through the rest of the globe, impacting markets and even the cost of borrowing for other countries.
AP

THIS ISN'T OVER

The Dow Jones closed out Friday with the worst weekly performance in two years and the TSX saw its biggest decline since May, but the bloodshed likely isn't over yet. More steep declines are expected...

The Politics of Monetary Tightening

When it comes to elections, timing is critical. This year brings a rash of elections in some of the most important emerging markets: Brazil, India, Indonesia, Turkey and South Africa are all going to...
Alamy

How Do Governments "Create" Money?

How do governments "create" money? That is the very relevant question a Sun reader asked me after reading one of my columns. Well, physical cash is only a tiny portion of existing money. Most of it nowadays simply exists as digits in computers. Granted, monetary economics is one of the most boring and technical topics in the field of economics. But given what is at stake in this risky experiment, we all have an interest in better understanding what is going on.
AP

Jittery Traders Await Bernanke Speech

TORONTO - The Canadian dollar was higher Friday as U.S. Federal Reserve chairman Ben Bernanke tried to reassure markets about economic prospects while not committing the central bank to any stimulus m...
AP

World Markets Bounce On Fed

UPDATE: The Dow Jones Industrial Average plummeted 400 points in its first 90 minutes of trading Wednesday, promising another highly volatile day on the markets as investors continued to fret over the...