The nominal interest rate is the simple interest charged on a loan or paid on a deposit. Real interest is nominal interest after taking inflation’s effects into account. Economists, as well as lenders ...

When you want to generate income rather than equity growth, a debt security like bonds is your most likely choice. However, all bonds are not the same. Bonds pay different interest rates and carry ...

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Inflation not only erodes the purchasing power of the dollar, it also impacts borrowing costs and real economic returns on investment securities. For this reason, investors are wise to understand and ...

A key question for monetary policymakers, as well as participants in financial markets, is: “Where are interest rates headed?” In the long run, economists assume that nominal interest rates will tend ...

Interest rates during the current economic recovery have been unusually low. Some have argued that yields have been pushed down by declines in longer-run expectations of the normal inflation-adjusted ...

The multi-year high recorded by the 10-year TIPS yield on 3rd November of last year coincided with the end of a multi-year downward correction in the US$ gold price. The short-term low in the 10-year ...

Part of the unintended genius in the design of the Federal Reserve System is demonstrated by how speeches given by a once-obscure academic in small regional cities like Helena, Mont., or Mankato can ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...