The Simple Math: How a Mere Quarter-Percent Interest Rate Hike Can Produce Big Swings on Bond Prices and Foreign Exchange Rates

Posted on by Farok J. Contractor

© 2015 Prof. Farok J. Contractor, Rutgers University Bah! Humbug! What can a mere quarter-percent hike in the Federal Reserve Bank’s interest rate do to markets? It seems so small a change as to be trivial. For two years prior to Janet Yellen’s appointment as Chair in January 2014, her predecessor, Ben Bernanke, and the business … Continue reading The Simple Math: How a Mere Quarter-Percent Interest Rate Hike Can Produce Big Swings on Bond Prices and Foreign Exchange Rates