A critical element for investors to consider is that the Fed is not forward thinking when it comes to monetary policy. Indeed, if we reflect on the last 15 years, we see that the Fed has been well behind the curve on everything. First...Show More Summary
I was at the Bank of England on Thursday to interview Charlie Bean, currently Deputy Governor responsible for monetary policy, who stands down at the end of June. I was wearing two hats (metaphorically - I don't think eccentricities of...
Jeffrey Frankel, a Project Syndicate columnist and professor at Harvard University's Kennedy School of Government says the ECB Should Buy US Treasuries. The European Central Bank needs to ease monetary policy further. Eurozone-wide inflation, at 0.8%, is below the target of “close to 2%,” and unemployment in most countries remains high. Show More Summary
Monetary policy remains accommodative and housing is rebounding in the developed world. Consequently, business activity is improving and this is being reflected in the related stock markets.
Chinese Premier Li Keqiang warned yesterday that the economy faced “severe challenges” this year – comments that came as weak data fanned speculation the central bank would relax monetary policy to support stuttering growth. ||| Beijing...Show More Summary
Stanley Fischer, nominated to serve as Fed vice chairman, says monetary policy should remain "expansionary"
WASHINGTON (Reuters) - The Federal Reserve has already begun to put the super-easy monetary policies of the last five years behind it, Fed vice chair nominee Stanley Fischer told U.S. lawmakers on Thursday.
Stanley Fischer, President Barack Obama's pick for Federal Reserve Vice Chairman, said Thursday the central bank's exit from extraordinary monetary policies has already started with the reduction of its bond-buying program.
Recent data showing low inflation in China have led some economists to call for more government stimulus and easier monetary policy. But there are signs that further easing in China is of limited use and carries serious risks.
ByTom Luongo: Gold (GLD) broke through overhead resistance at $1361 on a mix of currency and geopolitical worries. In my last article on this subject, I noted that the ECB's refusal to alter its current monetary policy put a strong bid under the euro (FXE) as traders abandoned the short euro/long U.S. Show More Summary
Evan Soltas has an excellent post on this topic, here is one bit: There’s no doubt that the costs and benefits of an “overshoot” of full employment are asymmetric. Stay too loose for too long, and you get a temporary bit of inflation. Exit too early, and you leave the work of fixing the recession […]
WASHINGTON (Reuters) - Federal Reserve Governor Jerome Powell said the U.S. central bank faces a "careful balancing" act in trying to remove its monetary policy accommodation at the right pace.
Via The Animal Spirits Page blog, It should now be evident that America's foreign policy is to an extent being driven by our banking mess. Again and again, we see Washington, including Wall Street's handmaiden, the Fed, exporting monetary...Show More Summary
BEIJING (Reuters) - China's central bank is prepared to take its strongest action since 2012 to loosen monetary policy if economic growth slows further, by cutting the amount of cash that banks must keep as reserves, sources involved in internal policy...
By Evariste Lefeuvre: The price action of the US dollar (DXY index here) is running against monetary policy expectations worldwide. As can be seen below, the DXY is heading south while rate spreads would clearly suggest otherwise. The...Show More Summary
I was in New York on Friday attending the U.S. Monetary Policy Forum. One of the sessions was on how central banks could better communicate their plans for using unconventional monetary policy. Federal Reserve Bank of Chicago President Charles Evans presented some very interesting ideas. Evans argued that the most important element for effective communication […]
(March 10, 2014 09:00 AM, by Scott Sumner) During the days of William Jennings Bryan it was pretty well understood that deflationary monetary policies helped bondholders and inflationary monetary policies helped debtors. That's why the rich favored the gold standard and lots of indebted farmers and small merchants... (0 COMMENTS)
This week brings a slew of central bank meetings: At the forefront will be the BOJ meeting on Tuesday where no changes to monetary policy are expected. However, we will be watching the commentary closely for hints to further monetary easing in the coming months. Show More Summary
1. Land mammals by weight. And the NYT runs a good Robert Ashley obituary. 2. The risk-taking channel for monetary policy (pdf). 3. No Coase theorem at Pimco. 4. Some economists on the Ryan poverty report. 5. Hispanic enrollment in college is rising rapidly. 6. New Amir Sufi blog on debt.
By James P. Montes: The current Fed's monetary policies and exit strategy from its debt monetization have created a high level of uncertainty globally. The Fed is trying to assure us that the transition will be a smooth one. But the global markets are telling us another story and are reaching a different conclusion. Show More Summary