Wells Fargo 3Q revenue boosted by higher interest rates
2 years, 5 months ago

Wells Fargo 3Q revenue boosted by higher interest rates

Associated Press  

WASHINGTON — Wells Fargo easily beat Wall Street’s third-quarter revenue forecasts as higher interest rates helped offset a steep decline in home lending. Wells has benefitted from the Federal Reserve’s aggressive interest rate hikes this year as the central bank tries to tamp down the highest inflation in four decades. While those higher interest rates have padded Wells’ bottom line, the flip side is that fewer people are in the market for home mortgages. Wells Fargo reported that its home lending revenue fell 52% from last year, when mortgage rates were less than half of the current 6.92%.

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History of this topic

Mortgage rates inch closer to 7% to close out 2024
2 months, 2 weeks ago

Mortgage rates inch closer to 7% to close out 2024

CNN  

New York CNN — Mortgage rates are climbing again, in yet another unwelcome sign to homebuyers. That’s the highest level in nearly six months and is also up from the prior week when mortgage rates averaged 6.85% versus the latest week’s average of 6.91%. The latest uptick in mortgage rates comes despite the Federal Reserve’s quarter-point interest rate cut last …

Fed lowers interest rates again but pares back plans for more cuts in the future
2 months, 3 weeks ago

Fed lowers interest rates again but pares back plans for more cuts in the future

LA Times  

Federal Reserve Chairman Jerome Powell has led the central bank’s battle to bring inflation down to 2%, but progress has stalled in recent months. Stocks plunged after the Fed announced its quarter-point rate reduction and updated projections, which halved the number of rate cuts for next year. And one Fed voting member, Beth M. Hammack, president of the Fed Bank …

The Fed cuts interest rates — but Trump's election could make things trickier
4 months, 1 week ago

The Fed cuts interest rates — but Trump's election could make things trickier

NPR  

The Fed cuts interest rates — but Trump's election could make things trickier toggle caption Anna Moneymaker/Getty Images North America The Federal Reserve lowered interest rates by a quarter percentage point Thursday, as expected — but the central bank may grow more cautious about future rate cuts as it monitors the impact of economic policies in a second Trump administration. …

Fed cuts interest rates by half point for first time in years. Here’s what that means for you
5 months, 3 weeks ago

Fed cuts interest rates by half point for first time in years. Here’s what that means for you

The Independent  

The latest headlines from our reporters across the US sent straight to your inbox each weekday Your briefing on the latest headlines from across the US Your briefing on the latest headlines from across the US SIGN UP I would like to be emailed about offers, events and updates from The Independent. In an official statement, the Fed’s Federal Open …

Fed leader, concerned about jobs downturn, tees up interest rate cuts
6 months, 3 weeks ago

Fed leader, concerned about jobs downturn, tees up interest rate cuts

LA Times  

Federal Reserve Chair Jerome H. Powell now sees inflation as less of a threat and maximizing jobs as even more important. But Powell’s emphasis on doing “everything we can to support a strong labor market” gave some economists reason to think that the Fed could make a half-point move next month. Powell said that the pace of policy actions would …

US economic growth increased last quarter to a healthy 2.8% annual rate
7 months, 2 weeks ago

US economic growth increased last quarter to a healthy 2.8% annual rate

Associated Press  

WASHINGTON — The nation’s economy accelerated last quarter at a strong 2.8% annual pace, with consumers and businesses helping drive growth despite the pressure of continually high interest rates. The central bank’s favored inflation gauge rose at a 2.6% annual rate last quarter, down from 3.4% in the first quarter of the year. the Fed thinks that it’s getting close …

Fed rate outlook looks just right for banks
11 months, 2 weeks ago

Fed rate outlook looks just right for banks

Live Mint  

When it comes to interest rates, banks need a Goldilocks scenario: Not too hot, not too cold. Surging interest rates gave banks plenty of headaches, to put it mildly, ranging from a rapid repricing of deposits to a plunge in the value of their longer-term fixed-rate securities. Fed policymakers last week left unchanged their median forecast implying three quarter-point rate …

High interest rates is hurting one more industry: Mortgage lenders
1 year, 4 months ago

High interest rates is hurting one more industry: Mortgage lenders

Al Jazeera  

Mortgage brokers, who rely on commissions, are struggling as their income has dipped as home buyers move to cash. That’s because potential homebuyers are waiting for interest rates to start coming down – meaning prospective clients for mortgage lenders like Clark are in holding patterns of sorts. That’s seven percent higher than this time last year “One way to avoid …

U.S. economic growth accelerated to 4.9% last quarter as consumers shrugged off Fed rate hikes
1 year, 4 months ago

U.S. economic growth accelerated to 4.9% last quarter as consumers shrugged off Fed rate hikes

LA Times  

Shoppers look over blankets on sale in a Costco warehouse in Sheridan, Colo. The Commerce Department on Thursday said the economy expanded last quarter at the fastest pace in nearly two years. The nation’s economy expanded at a robust 4.9% annual rate from July through September as Americans defied higher prices, rising interest rates and widespread forecasts of a recession …

Stock market today: Wall Street edges higher following data that shows the labor market is cooling
1 year, 6 months ago

Stock market today: Wall Street edges higher following data that shows the labor market is cooling

Associated Press  

A choppy day of trading on Wall Street ended Friday with slight gains for stocks, as the market notched its second straight winning week. Wall Street welcomed the latest monthly labor market snapshot, as it roots for the economy to show signs of lower inflation and cooling job growth so that the Fed will be able to ease up on …

Higher Interest Rates Drive U.S. Economy Slowdown To 1.1% Rate
1 year, 10 months ago

Higher Interest Rates Drive U.S. Economy Slowdown To 1.1% Rate

Huff Post  

LOADING ERROR LOADING WASHINGTON — The U.S. economy slowed sharply from January through March, decelerating to just a 1.1% annual pace as higher interest rates hammered the housing market and businesses reduced inventories. Yet the central bank’s policymakers are aiming for a so-called soft landing: Cooling growth enough to curb inflation yet not so much as to send the world’s …

Federal Reserve Hikes Interest Rates Again, Despite Bank Failures
1 year, 11 months ago

Federal Reserve Hikes Interest Rates Again, Despite Bank Failures

Huff Post  

LOADING ERROR LOADING WASHINGTON ― The Federal Reserve on Wednesday continued to ramp up its efforts to slow the economy, despite recent bank failures caused partly by rising interest rates. “The Fed’s decision to raise rates is incongruous with efforts to reestablish the stability of the financial system,” Mark Zandi, chief economist with financial analysis firm Moody’s Analytics told HuffPost …

Federal Reserve officials sound warnings about higher rates
2 years ago

Federal Reserve officials sound warnings about higher rates

Associated Press  

WASHINGTON — A run of strong economic data and signs that inflation remains stubbornly high could lead the Federal Reserve to raise its benchmark rate higher in the coming months than it has previously forecast, several Fed officials say. “Recent data suggest that consumer spending isn’t slowing that much, that the labor market continues to run unsustainably hot and that …

2023 recession now expected to start later than predicted
2 years ago

2023 recession now expected to start later than predicted

LA Times  

Over the last year, the Federal Reserve has raised its key short-term rate eight times, causing many kinds of consumer and business loans, including auto loans, to become more expensive. A majority of the nation’s business economists expect a U.S. recession to begin later this year than they had previously forecast, after a series of reports have pointed to a …

Fed’s rate hikes likely to cause a recession, research says
2 years ago

Fed’s rate hikes likely to cause a recession, research says

Associated Press  

NEW YORK — Can the Federal Reserve keep raising interest rates and defeat the nation’s worst bout of inflation in 40 years without causing a recession? The perception that the central bank will need to keep raising borrowing costs was reinforced by a government report Friday that the Fed’s preferred inflation gauge accelerated in January after several months of declines. …

Almost all Fed officials backed quarter-point interest rate hike, minutes show
2 years ago

Almost all Fed officials backed quarter-point interest rate hike, minutes show

LA Times  

Nearly all Federal Reserve policymakers agreed earlier this month to slow the pace of their rate increases to a quarter of a point, with only “a few” supporting a larger half-point hike. At the meeting, Fed officials also unanimously agreed that “ongoing increases” in the Fed’s key rate “would be appropriate,” which points to additional hikes in the next two …

How The Fed's Interest Rate Hikes Could Affect Your Finances
2 years, 3 months ago

How The Fed's Interest Rate Hikes Could Affect Your Finances

Huff Post  

NEW YORK — The Federal Reserve’s move Wednesday to raise its key rate by a half-point brought it to a range of 4.25% to 4.5%, the highest level in 14 years. Fed Chair Jerome Powell has acknowledged that aggressively raising interest rates would bring “some pain” for households but that doing so is necessary to crush high inflation. Even before …

How steep fed rate hikes affect your finances
2 years, 4 months ago

How steep fed rate hikes affect your finances

Associated Press  

NEW YORK — Mortgage rates continue to jump, home sales slump and credit cards and auto loans increase. As the Federal Reserve steadily increases interest rates, many economists say they fear that a recession remains inevitable in the coming months — and with it, job losses that could cause hardship for households already hurt worst by inflation. Even before the …

US Fed Announces Fourth Straight 0.75 Point Rate Hike
2 years, 4 months ago

US Fed Announces Fourth Straight 0.75 Point Rate Hike

News 18  

The Federal Reserve delivered another steep interest rate increase on Wednesday, as expected, with its move to cool red-hot inflation taking on more weight amid the political maelstrom ahead of key US midterm elections. The Fed’s aggressive rate hikes this year so far have not had a noticeable impact on prices, but increase the risk the US economy could suffer …

US mortgage rates top 7% for the first time in 2 decades
2 years, 4 months ago

US mortgage rates top 7% for the first time in 2 decades

Associated Press  

WASHINGTON — The average long-term U.S. mortgage rate topped 7% for the first time in more than two decades this week, a result of the Federal Reserve’s aggressive rate hikes intended to tame the nation’s stubbornly high inflation. Higher mortgage rates reduce homebuyers’ purchasing power, resulting in fewer people being able to afford to buy a home at a time …

US mortgage rates top 7 percent for first time over two decades
2 years, 4 months ago

US mortgage rates top 7 percent for first time over two decades

Al Jazeera  

The key 30-year mortgage rate jumped to 7.08 percent this week, sharply curtailing demand, even as home prices continued to rise. The average long-term US mortgage rate topped 7 percent for the first time in more than two decades this week, a result of the Federal Reserve’s aggressive rate hikes intended to tame inflation not seen in some 40 years. …

Average long-term US mortgage rates up another quarter point
2 years, 5 months ago

Average long-term US mortgage rates up another quarter point

Associated Press  

WASHINGTON — Average long-term U.S. mortgage rates reached their highest level in more than two decades this week and are likely to climb further as the Federal Reserve has all but promised more rate increases in its battle to tamp down persistent inflation. Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate climbed to 6.92% …

Typical mortgage payment has soared $337 in just six weeks
2 years, 5 months ago

Typical mortgage payment has soared $337 in just six weeks

Daily Mail  

Just this week, lender Freddie Mac said that the lending rate has more than doubled in the last 12 months While the seven percent rise in mortgage rates is the highest since just prior to the Great Recession The volatility of mortgage rates has led to potential buyers abandoning their plans to buy homes The average homeowner's monthly mortgage payment …

Long-term mortgage rates now at highest point since 2008
2 years, 6 months ago

Long-term mortgage rates now at highest point since 2008

Associated Press  

WASHINGTON — Average long-term U.S. mortgage rates jumped again this week, hitting the highest levels in almost 14 years and pushing even more would-be buyers out of the market. That’s the highest the long-term rate has been since November of 2008, just after the housing market collapse set off the Great Recession. The Fed has raised its benchmark short-term interest …

Mortgage borrowers and renters told to brace for big financial hit by December
2 years, 6 months ago

Mortgage borrowers and renters told to brace for big financial hit by December

ABC  

The full budget impact of the second most aggressive interest rate hiking cycle in the Reserve Bank's history is still months from being felt by millions of households. Key points: Economists are warning home loan customers have only felt the impact of the first RBA rate hike That's because there's a lag between when it announces a hike and when …

How the Federal Reserve's rate hikes affect your finances
2 years, 7 months ago

How the Federal Reserve's rate hikes affect your finances

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. The Fed's latest hike, its fourth since March, will …

Average long-term US mortgage rates retreat this week
2 years, 8 months ago

Average long-term US mortgage rates retreat this week

Associated Press  

WASHINGTON — Average long-term U.S. mortgage rates eased again this week as the Federal Reserve remains likely to raise its benchmark borrowing rate in its ongoing battle to bring down inflation. Mortgage buyer Freddie Mac reported Thursday that the 30-year rate fell to 5.30% from 5.70% last week. They also acknowledged that their rate hikes could weaken the economy, but …

Powell: Fed aims to avoid recession but says it’s possible
2 years, 8 months ago

Powell: Fed aims to avoid recession but says it’s possible

Associated Press  

WASHINGTON — Federal Reserve Chair Jerome Powell sought Wednesday to reassure the public that the Fed will raise interest rates high and fast enough to quell inflation, without tightening credit so much as to throttle the economy and cause a recession. “It’s not our intended outcome, but it’s certainly a possibility.” Powell stressed that the Fed’s primary goal is to …

Fed hikes interest rates by three-quarters of a percentage point in boldest move since 1994
2 years, 9 months ago

Fed hikes interest rates by three-quarters of a percentage point in boldest move since 1994

CNN  

Washington, DC CNN — The Federal Reserve raised interest rates by three-quarters of a percentage pointon Wednesday in an aggressive move to tackle white-hot inflation that is plaguing the economy, frustrating consumers and stifling the Biden administration. In a post-meeting news conference, Federal Reserve Chairman Jerome Powell acknowledged that a three-quarter-point rate hike “is an unusually large one.” While Fed …

The Fed has a new plan to avoid recession: Party like it’s 1994
2 years, 10 months ago

The Fed has a new plan to avoid recession: Party like it’s 1994

CNN  

New York CNN Business — Wide leg jeans, butterfly clips and half-point rate increases: The 1990s are back. Powell also indicated that he wouldn’t hesitate to do it again — a move straight out of the central bank’s 1994 playbook, when the Fed last tempered the US economy and successfully executed a so-called soft landing. In the 12 months that …

Business Highlights: Wall Street dive, worker shortage
2 years, 10 months ago

Business Highlights: Wall Street dive, worker shortage

Associated Press  

___ Stocks slump 3% as worries grow over higher interest rates NEW YORK — Stocks closed sharply lower on Wall Street as worries grow in markets that the higher interest rates the Federal Reserve is using in its fight against inflation will derail the economy. ___ Rising interest rates in US will hinder foreign economies WASHINGTON — When the Federal …

EXPLAINED: How Higher Interest Rates Will Affect Americans' Finances
2 years, 11 months ago

EXPLAINED: How Higher Interest Rates Will Affect Americans' Finances

News 18  

Americans who have long enjoyed the benefits of historically low interest rates will have to adapt to a very different environment as the Federal Reserve embarks on what’s likely to be a prolonged period of rate hikes to fight inflation. Still, mortgage rates don’t necessarily rise in tandem with the Fed’s rate increases. Those who don’t qualify for low-rate credit …

How Fed hikes could affect mortgages, car loans, card rates
3 years, 1 month ago

How Fed hikes could affect mortgages, car loans, card rates

Associated Press  

WASHINGTON — Will mortgage rates go up? Mortgage rates don’t usually rise in tandem with the Fed’s rate increases. And with numerous Fed rate hikes expected, the rate on the 10-year note could rise over time — and so, by extension, would mortgage rates. Those who don’t qualify for such low-rate credit card offers might be stuck paying higher interest …

US average mortgage rates rise; 30-year loan at 3%
3 years, 9 months ago

US average mortgage rates rise; 30-year loan at 3%

Associated Press  

WASHINGTON — Mortgage rates rose this week, pushing the benchmark 30-year home loan to the 3% mark for the first time since mid-April. Mortgage buyer Freddie Mac reported Thursday that the average for the benchmark 30-year home-loan rate increased to 3% from 2.94% last week. The government reported last week that a worrisome bout of inflation struck in April, with …

EXPLAINER: Why rising rates are unsettling Wall Street
4 years ago

EXPLAINER: Why rising rates are unsettling Wall Street

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Interest rates keep marching higher, …

Wells Fargo can’t seem to escape its troubled past
4 years, 2 months ago

Wells Fargo can’t seem to escape its troubled past

CNN  

New York CNN Business — Wells Fargo is still being haunted by its history of ripping off customers. More than four years after the Wells Fargo fake-accounts scandal erupted, the bank reported Friday another $321 million of quarterly losses tied to customer refunds. That brings Wells Fargo ’s 2020 total for what it calls customer “remediation” to a staggering $2.2 …

JPMorgan’s profit plummets 69% because of coronavirus
4 years, 11 months ago

JPMorgan’s profit plummets 69% because of coronavirus

CNN  

New York CNN Business — As the coronavirus pandemic crushes the global economy, JPMorgan set aside a stunning $6.8 billion worth of reserves to insulate itself from loan defaults. America’s largest bank by assets said its net income fell to $2.9 billion in the first three months of the year, compared to $9.2 billion in the same period last year. …

The Fed cuts interest rates for the first time since 2008
5 years, 7 months ago

The Fed cuts interest rates for the first time since 2008

CNN  

Washington CNN Business — The Federal Reserve on Wednesday lowered interest rates for the first time since the Great Recession in 2008 to help stave off the possibility of an economic downturn. Policymakers led by Fed Chairman Jerome Powell voted 8-2 in favor of a small cut in the federal funds rate, and recommitted to their promise to “act as …

Wells Fargo’s profit climbs 19%
5 years, 8 months ago

Wells Fargo’s profit climbs 19%

CNN  

New York CNN Business — Wells Fargo’s bottom line grew steadily in the second quarter as the big bank searches for a new boss and tries to recover from years of scandal. Part of Wells Fargo’s earnings beat was driven by cutting costs, with net interest expenses declining 4% from a year ago. Wells Fargo’s results also demonstrate pressure on …

Fed raises interest rates amid stronger inflation, drops crisis-era guidance
6 years, 9 months ago

Fed raises interest rates amid stronger inflation, drops crisis-era guidance

Live Mint  

Washington: The Federal Reserve raised interest rates on Wednesday, a move that was widely expected but still marked a milestone in the US central bank’s shift from policies used to battle the 2007-2009 financial crisis and recession. In raising its benchmark overnight lending rate a quarter of a percentage point to a range of between 1.75% and 2%, the Fed …

Column: Even as Wells Fargo scandal deepens, GOP lawmakers push bank deregulation
7 years, 6 months ago

Column: Even as Wells Fargo scandal deepens, GOP lawmakers push bank deregulation

LA Times  

Far be it from me to see metaphors where none exist, but Wells Fargo’s good name was literally blown away when Hurricane Harvey roared into the Texas city of Corpus Christi last week. “Wells Fargo is the poster child for why consumers need a strong Consumer Financial Protection Bureau,” said Emily Rusch, executive director of the California Public Interest Research …

US Fed hikes interest rate after one-year pause, faster pace ahead
8 years, 3 months ago

US Fed hikes interest rate after one-year pause, faster pace ahead

China Daily  

A Chinese clerk counts US dollar and renminbi banknotes at a bank in Huaibei city, East China's Anhui province, Jan 22, 2015. Confidence in economy The moderate economic expansion, continued strengthening of labor market and the improvement in inflation condition supported the central bank to raise interest rate after nearly a one-year pause, according to the statement. The US economy …

Fed raises interest rate and projects more hikes in 2017 to fight off inflation
8 years, 3 months ago

Fed raises interest rate and projects more hikes in 2017 to fight off inflation

LA Times  

0 5 10 15 20 2 5% '16 ’14 ’13 ’12 ’11 ’10 ’09 ’08 ’07 ’06 ’05 ’04 ’03 ’02 ’01 ’00 ’99 ’98 ’97 ’96 ’95 ’94 ’93 ’92 ’91 ’90 ’89 ’88 ’87 ’86 ’85 ’84 ’83 ’82 ’81 ’80 ’79 ’78 ’77 ’76 ’75 ’74 ’73 ’72 ’71 ’70 ’69 ’68 ’67 ’66 ’65 Persistent inflation …

Fed Raises Rates, But Mortgage Rates Stay Low
19 years, 10 months ago

Fed Raises Rates, But Mortgage Rates Stay Low

NPR  

Fed Raises Rates, But Mortgage Rates Stay Low toggle caption Geoff Gaudreault, NPR Economist Mark Vitner Discusses Fed, Mortgage Rates toggle caption Geoff Gaudreault, NPR/Sources: Federal Reserve Board, National Association of Realtors The Federal Reserve again has boosted the cost of borrowing for millions of consumers by raising short-term interest rates. In its announcement, the Fed said spending growth has …

Rate Hike: End of Cheap Money
20 years, 8 months ago

Rate Hike: End of Cheap Money

NPR  

Rise in Federal Rate Ends Era of Cheap Money Fed Plans to Raise Interest Rates for First Time in Four Years Part 1: Home-Buyers Lock in Mortgage Rates Audio for this story is unavailable. toggle caption toggle caption The era of really cheap money is about to end, as the Fed moves to raise interest rates for the first time …

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