American Association of Individual Investors

September Charts of Interest: Rate Cuts, Plus a 3,821% Investment Return

This month’s charts of interest look at the stock market’s summer rally, portfolio allocations and where interest rates could be headed.

Mortgage Rate Too Good to Be True? Read the Fine Print

Some lenders are advertising mortgage rates that are much lower than you might expect. Here's how to determine if you're ...
San Francisco Fed

I find definitions of the federal funds rate stating that it can be both above and below the discount rate. Which is correct?

Great question! The correct answer depends on the time period. Since January 2003, when the Federal Reserve System implemented a “penalty” discount rate policy, the discount rate has been about 1 ...
Reuters

Chicago and NY Fed directors favored discount rate cut in July

Aug 27 (Reuters) - Members of the boards of directors overseeing the Chicago and New York Federal Reserve banks voted in favor of lowering by a quarter percentage point the central bank’s discount ...
JSTOR Daily

Are stock prices driven by expected growth rather than discount rates? Evidence based on the COVID-19 crisis

We use the Gordon (Rev Econ Stat 41(2):99-105, 1959) constant growth model to gauge the effects from innovations in implied growth versus discount rates. During the COVID-19 downturn and the Global ...
Business Wire

Milliman analysis: Corporate pension funded ratio drops to 104.8% in February following discount rate declines

SEATTLE--(BUSINESS WIRE)--Milliman, Inc., a premier global consulting and actuarial firm, today released its monthly Milliman 100 Pension Funding Index (PFI), which analyzes the 100 largest U.S.