Weekly Report – October 5, 2022

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Highlight of the Week

U.N. Calls On Fed, Other Central Banks to Halt Interest-Rate Increases

  • The UN stated that the US Fed’s interest rate hikes are negatively impacting developing countries. As a recession seems more and more likely, the Fed’s policy will make it harder for the poorest countries to recover.
  • Jerome Powell stated that the Fed considers the effects of rate hikes on other countries when making its decisions. The UN stated that there are better solutions than rate hikes to curb inflation such as price caps funded by taxes on energy companies.

Rate Curves

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Rapid Report:

Abelian Brand Mark

Retail Real Estate Is Enjoying Its Biggest Revival in Years

  • US retail vacancy reached its lowest point in 15 years. More stores were opened than closed in the last year.
  • Many companies, including online-only companies, are opting to renovate existing retail spaces rather than build new spaces. However, the office real-estate sector is suffering from oversupply as many people continue to work from home.
  • Additionally, consumers have been choosing to make the trip to retail stores rather than shopping online post the pandemic.

Battered Investors Now Find Thrills in T-Bills

  • As the Fed has been raising rates to combat the rising inflation, Treasury bills have seen their yields increase significantly. Short-term T-bills have a yield as high as 4.2%.
  • Many investors are turning to safer investments instead of volatile crypto markets and a steadily declining stock market.
  • T-Bills are offering better yields than Money Market accounts and CDs while being considered one of the safest investments. However, if the Fed raises rates beyond expectations, the price of T-Bills could fall further.
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Weekly Report – September 27, 2022
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Weekly Report – October 19, 2022

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