Argus analyst Kevin Heal started Ameriprise Financial with a Buy rating and a price target of $177, saying the company generated "steady" revenues over the recent quarters thanks to the "strong wrap flows" and rising short-term interest rates
. While the flattening yield curve and a shift in the Fed interest rate policy pose more recent challenges, the analyst contends that Ameriprise Financial will be able to derive growth from equity market volatility, an increase in fee-based accounts, and future revenues from Ameriprise Bank.
Spread income was driven up by modestly higher average earning asset balances and higher short-term interest rates
. Offsetting higher earning asset yields during the quarter was continued deposit and funding mix shift and increase in funding costs overall as short-term rates climb.
Tribune NEws Network Doha The US Federal Reserve, widely known as simply 'the Fed', duly hiked short-term interest rates
by 25bp for the third time this year following its recent meeting and the decision comes despite the continued escalation of trade tensions between the US and China, a Qatar National Bank (QNB) report said on Saturday.
TOKYO, 20 Dhu-AlHijjah,1437 AH, 21 September,2016 , SPA -- Asian shares rose Wednesday after Japan's central bank wrapped up a policy meeting with a decision to keep short-term interest rates
unchanged while adjusting its asset purchases to help push yields on long-term government bonds higher, AP reported.
Investors will be watching to see if the Federal Reserve reveals any clues on when it expects to hike short-term interest rates
From estimated VAR we compute impulse-response functions to analyze responses of short-term interest rates
to the five types of structural shocks (demand shock, liquidity shock, inflation shock, monetary policy shock, exchange rate shock).
The Fed introduced the Interest on Excess Reserves rate (IOER) during the financial crisis in 2008 to help the central bank control short-term interest rates
The Taylor Rule is often used to describe simply how central banks adjust short-term interest rates
in response to economic conditions.
In Tokyo morning deals, the dollar remained weak versus the yen and fell to its lowest point in two weeks in the upper 98 yen zone on news reports that the Fed will leave short-term interest rates
near zero for a long time by discussing modification to conditions for changes in interest rates, dealers said.
The Fed, whose policy-setting Federal Open Market Committee concludes a two-day meeting on Wednesday, said just last month that it expects to keep short-term interest rates
exceptionally low until the United States unemployment rate falls to 6.5 per cent, inflation permitting.
The central bank also extended a plan to keep short-term interest rates
at record lows, close to zero, through mid-2015, or six months longer than it had planned.