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Market Analysis

From oil shocks to funding strains, Fed confronts new complexities

The Federal Reserve will conclude its latest policy meeting on Wednesday buffeted by conflicting economic data, under steady pressure from the White House for steep interest rate cuts, and confronted as well with an unexpected jump in overnight borrowing costs that may require action on its own.

The Fed has a repo problem. What's that?

As if the U.S. Federal Reserve did not already have enough on its plate heading into its meeting on interest rates this week, chaos deep inside the plumbing of the U.S. financial system has thrown policymakers an unexpected curveball.

Markets fear ECB tiering is an effective rate hike

The European Central Bank's decision to introduce a tiered interest rate may be inadvertently tightening rather than easing market conditions, dampening some of the impact from its move to cut interest rates and resume bond purchases.


Dollar rises as Fed cuts rates, but easing outlook uncertain

The dollar hit a seven-week high against the yen and a three-month peak versus the Swiss franc on Wednesday after the Federal Reserve cut interest rates by a quarter of a percentage point, as expected, but gave an uncertain outlook on future easing and sounded less bleak about the U.S. economy.