Finance market Discuss
The Bond Market Is Now Betting Powell Will Succeed With a Soft Landing- Barrons; 3/22. You may use the link below if you signed up for the Barron’s student subscription, or access from the Database Lauren Reiter showed you in the FIN 408 Library site.
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2) From CNN Direct Link: Nearly a third of US workers make less than $15 an hour, study finds
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3) From Investopedia Direct Link- Understanding Yield Curves:
In 1-2 pages, please complete/discuss the following (you may bullet-point your answers):
A) provide a 2-3 sentence summary of the first two articles from Barron’s and CNN
B) Then use your reading of these articles and the Investopedia piece to answer the following:
-Explain what the yield curve is, how it is interpreted generally by financial market participants, and specifically what it’s current shape seems to be signalling to financial markets about interest rates and expectations of economic activity in both the short and long run?
What is the difference between a “soft” vs. a “hard” landing?
What is the Federal Reserves strategy for engineering a soft landing?
How does the information on Wages from the CNN article complicate the Fed’s goals?
What are the risks associated with the Fed strategy?
How are U.S. Equity and Bond markets interpreting and reacting to this most recent news from Fed Chair Powell and his commitment to a soft landing? Would you say that the Fed still has credibility within markets, or is confidence in Fed Policy waning?
How confident are you that the Fed will be able to achieve it’s soft landing goal–Please cite specific economic data, projections, and interpretations in support of your opinion.
