GeoEconomics

Leitzins / funds rate:

Country: Current / Aktueller Wert Since / Seit
Euroland 0,00% 10.03.2016
USA 2,0 – 2,25% 26.09.2018
Japan 0 bis -0,1% 01.02.2016
Großbritannien 0,75% 02.08.2018
Schweiz -1,25 bis -0,25 % 15.01.2015
Schweden -0,5% 11.02.2016
Russland 7,25% 23.03.2018

https://www.finanzen.net/leitzins/

Other Central Bank Interest Rates:

Central Bank Rates 2019-01-08 (src)

the central bank interest rate / federal funds rate – is the “cost of money” – meaning how much does it cost to borrow 100USD of CASH from the FED as a private bank.

Only the FED as the ECB is allowed to print and lend CASH.

Fun Fact: Private banks actually can lend 1000USD – when they actually only have 100USD from the FED – 900USD (90%) is created out of thin digital air and only exists in digital form.

Thus: If people would request only 20% of all funds of a bank to be paid out in cash – the bank could not do it.

“The Federal Reserve will conclude its final policy meeting of the year Wednesday.

With traders widely expecting the central bank to raise short-term interest rates, many say the focus will be on Fed officials’ comments on the economy.

Volatile markets and mixed inflation data have amplified investors’ doubts about how many times the Fed can raise rates next year.” (src)

“The current federal funds rate rose to 2.25% when the Federal Open Market Committee met on September 26, 2018. This benchmark rate is an indicator of the economy’s health.

The Federal Reserve signaled it would raise rates to 2.5 percent in December 2018, 3.0 percent in 2019, and 3.5 percent in 2020. The rate is critical in determining the U.S. economic outlook.

The 2008 recession caused the Fed to lower its benchmark rate to 0.25 percent. That’s effectively zero. It stayed there seven years until December 2015, when the Fed raised interest rates to 0.5 percent. The fed funds rate controls short-term interest rates. These include banks’ prime rate, most adjustable-rate and interest-only loans, and credit card rates.

 

FOMC Raised the Rate to 2.5 Percent

“If the rate is raised, expect slower growth. It will also raise the cost of home mortgages, loans, and credit cards.” (src)

Jerome Powell

 

Photo by Alex Wong/Getty Images

The FOMC raised the fed funds rate a quarter point to 2.25 percent on September 26, 2018.

Prior to that, the Fed had raised rates to the following levels:

  • 0.5 percent on Dec. 15, 2015.
  • 0.75 percent on Dec. 14, 2016.
  • 1.0 percent on March 5, 2017.
  • 1.25 percent on June 14, 2017.
  • 1.5 percent on Dec. 13, 2017.
  • 1.75 percent on March 21, 2018.
  • 2.0 percent on June 13, 2018.

 

The Fed finished tapering off its quantitative easing (printing money) program in 2013.

That was a massive expansion of the Fed’s open market operations tool.

The Fed still had $4 trillion of debt in 2017 on its books from QE.

In October 2017, it began allowing its holdings to gradually decline.

 

“The FOMC sets a target for the fed funds rate at its regular meeting. Banks charge each other this rate when they lend each other funds. Those are loans banks make to each other to meet the Fed’s reserve requirement. Technically, the banks set these rates, not the Federal Reserve. But banks usually follow whatever rate the Fed sets as its target. ”

https://www.thebalance.com/current-federal-reserve-interest-rates-3305694

If you a Tripple-AAA rated US-company would need to borrow money – you would have to pay 5% interest according to: https://www.bankrate.com/rates/interest-rates/wall-street-prime-rate.aspx

OPEC’s ministerial meeting takes place in Vienna, Austria

https://www.opecseminar.org/fxdata/opecseminar2018/prod/media/Newsletter-7th-OPEC-Seminar-hr.pdf

Oil Regains Ground After Sharp Selloff… just to fall all over again.

A rally in oil prices helped steady markets in Europe and Asia on Friday after crude suffered steep declines earlier this week on concerns that major producers are flooding the market with oil, reports the Wall Street Journal. Brent crude,the global oilbenchmark, was up 2.1% at $67.66 a barrel on London’s Intercontinental Exchange, around 4% lower than where it opened the week.

West Texas Intermediate futures (WTI), the U.S. oil standard, were up 1.9%, at $57.53 a barrel on the

New York Mercantile Exchange.

Overall, investors are watching the crisisin the U.K., following several resignations from Prime Minister Theresa May’s government on Thursday. Concerns are growing that the U.K.’s plan to exit the European Union is unraveling.

Once seen as an unlikely outcome, the prospect of the U.K. crashing out of the European Union early next year without an agreement spelling out the terms of its exit is now considered a plausible scenario inside boardrooms.

The Journal’s Jason French and Jovi Juan look at how ano-deal Brexit might affect the U.K.

“We didn’t have many no-deal queries ’til about a month and a half ago,” said Allie Rennison, head of EU and trade policy at the Institute of Directors, a British organization that represents business leaders. With political uncertainty climbing, “people are becoming much more aware of it,” she said.

Britain is slated to leave the EU on March 29. It would represent the first departure of a major economy from a comprehensive free-trade bloc in decades.

Oil Hedge Fund Giant Hammered in Crude’s SlideOne of the last oil bulls standing has become a high-profile victim of the recent rout in crude prices, write Rachael Levy, Georgi Kantchev and Gregory Zuckerman.

Pierre Andurand, who earlier in 2018 predicted oil could soon hit $100 a barrel, suffered the largest-ever monthly loss of his flagship fund in October.

“The weak oil physical market is not only due to more OPEC oil on the water. It is mainly due to China destocking. Their low imports are not sustainable. They have been very low for 3 months. Their imports could go back up 2mbd any time now” (src)

The $1 billion Andurand Commodities Fund lost -20.9% last month, taking the fund down more than -12% for the year, according to numbers sent to investors and reviewed by The Wall Street Journal.

A spokesman for Mr. Andurand declined to comment on the fund’s performance.

Mr. Andurand is one of the most prominent oil traders in a sector littered with casualties, though he has dealt with losses before.

His previous fund closed shop in 2012.

oil investor tweets:

Brexit EU tweets:

 

… in which asholes and psychopaths “earn” the most money and rule the world and turn earth into hell.