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S&P modifies these ratings by assigning or to further rate a bond's relative standing within each category.
Willis Towers Watson indicates that underlying trends continue to point to further rate increases in 2016.
But it added that the positive signs were tentative, and it left the door open to further rate cuts in the new year.
The markets interpreted this particular piece of mumbling incoherence as a "neutral bias"—meaning no predisposition to further rate rises.
Using its stock phrase to indicate that it is leaving the door open to further rate cuts if the economy does not rebound soon, the Fed said "the risks are weighted mainly toward conditions that may generate economic weakness in the foreseeable future".
Hence, they provide some protection against price erosion due to further rate rises.
Similar(51)
The more successful the bank is in taming inflationary expectations, the readier it will be to make further rate cuts to rescue a floundering economy.
Hyman doesn't think the Fed's report will move the markets, especially since it's expected to use further rate cuts to fuel the economy.
This year, a handful of Democratic-led states are gearing up to curb further rate hikes by enacting laws and adopting insurance regulations designed to shore up the traditional insurance industry and restore parts of the ACA, known as Obamacare.
The housing market continues to show signs of a slowdown, another factor that could encourage the Federal Reserve to delay further rate increases.
But he left little doubt that the Fed would have to consider further rate cuts in coming weeks and months.
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