Advertisement
Advertisement
short rate
noun
- a charge, proportionately higher than the annual rate, made for insurance issued or continued in force by the insured for less than one year.
Example Sentences
"If short rate expectations are going to drive currency trends, we'll go on seeing the ECB's hawkish stance dominate and there's more upside to EUR/USD...to come," said Kit Juckes, chief FX strategist at Societe Generale.
Darren Wolf, global head of investments, alternative investment strategies at Aberdeen Standard Investments, who manages $13 billion in hedge fund assets, said that hedge fund managers “had a ‘don’t fight the Fed’ mentality, and didn’t have short rate bets on in much size,” meaning the yield spike didn’t benefit them.
Bringing reserves to $1.7 trillion would provide a cushion of about $200 billion to absorb shocks during periods of tight liquidity, said Joseph Abate, a short rate strategist for Barclays.
Although cutting the short rate to 1 percent as Trump demands would reverse the inversion, we’d be treating a symptom of possible economic disease rather than treating the disease.
“That leaves lowering the short rate as the primary tool available to fight the next recession.”
Advertisement
Advertisement
Advertisement
Advertisement
Browse