Tag Archive: Federal Reserve

FOMC Statement Demonstrates Firm Grasp of the Obvious

The FOMC delivered a statement largely as expected.  It upgraded its assessment of the global economy by dropping the reference to risks.  It downgraded its assessment of the domestic economy by acknowledging that growth has slowed.   Otherwi...

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FX Daily April 25: Global Tensions Lessened, but Bound to Increase Ahead of June FOMC Meeting

We expect the FOMC statement this week to recognize the improvement in the global conditions that have been an increasing worry for officials over Q1.  At the same, time the soft patch of the US economy is undeniable. We suspect the Fed will look past the weakness of the US economy. The strength of the … Continue reading...

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The Shocking Reason For FATCA… And What Comes Next

Submitted by Nick Giambruno via InterntionalMan.com, If you’ve never heard of the Foreign Account Tax Compliance Act (FATCA), you’re not alone. Few people have, and even fewer fully grasp the terrible things it foreshadows. FATCA is a U.S. ...

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Futures Jump On Chinese Trade Data; Oil Declines; Global Stocks Turn Green For 2016

With oil losing some of its euphoric oomph overnight, following the API report of a surge in US oil inventories, and a subsequent report that Iran's oil minister would skip the Doha OPEC meeting altogether, the global stock rally needed another catal...

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Great Graphic: WSJ survey of Fed Expectations

This Great Graphic shows the results of the last three Wall Street Journal survey of business and academic economists on the outlook for Fed policy. The key take away is that despite all the talk and ink spilled on the shifting Fed stance and the split within the FOMC, economists views did not change much … Continue...

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Gold Prices Rise 16% In Q1 – Best Quarter In 30 Years

Gold Prices Rise 16% In Q1 – Best Quarter In 30 Years – Gold prices gained 16% in Q1 – best quarterly performance since 1986– Gains due to increasing global financial, macroeconomic and monetary risk– Stocks come under pressure – Flat in U.S.; Falls ...

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Four Keys to The Week Ahead

There are four events that will shape market psychology in the week ahead.  They are Yellen's speech to the NY Economic Club, US jobs data, eurozone March CPI and PMI, and Japan's Tankan Survey.   The broad backdrop is characterized by the rebuilding of risk appetites since the middle of February, though the MSCI emerging market … Continue reading...

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Dollar Firm Ahead of the FOMC, UK Budget Looms

Since the Federal Reserve hiked rates in December, both the European Central Bank and the Bank of Japan have eased policy further.  The idea that because they cut rates means that the Fed cannot raise rates is a not a particularly helpful way to ...

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Swiss Politicians Slam Attempts To Eliminate Cash, Compare Paper Money To A Gun Defending Freedom

As we predicted over a year ago, in a world in which QE has failed, and in which the ice-cold grip of NIRP has to be global in order to achieve its intended purpose of forcing savers around the world to spend the taxed product of their labor, one thi...

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Gerald Celente: Get Prepped For Global Systemic Collapse

        Gerald Celente: Get Prepped For Global Systemic Collapse Posted with permission from Rory Hall, The Daily Coin (CLICK FOR ORIGINAL)     More ridiculous predictable market action today. The worse things become in the real world the more franti...

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Global Risk Off: China Reenters Bear Market, Oil Tumbles Under $30; Global Stocks, US Futures Gutted

   "We're gonna need a bigger Bullard"     - overheard on a trading desk this morning. Yesterday, when looking at the market's "Bullard 2.0" moment, which was a carbon copy of the market's kneejerk surge higher response to Bullard's "QE4" comments fr...

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Janet Yellen Fights the Tide of Falling Interest

The Fed is going to have to take back this interest rate hike (Dec 16). The process that sets the interest rate is complex. I have written many words on its terminal decline. However, there are two simple reasons why the trend remains downward.

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The Dog That Did not Bark

In the famous Sherlock Holmes Story, the detective identified the perpetrator from the fact that a dog didn’t bark. The dog didn’t bark because it dog knew the perp. This story makes a good analogy to what happened on Thursday, Sep 17. Perhaps I should say what did not happen. The Fed did not raise the interest rate.

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The Fed and the Cotton Candy Market

For Keith Weiner the Federal Reserve operates like a Cotton Candy Machine for the housing market. It creates a massive bubble, financed with debt. It spins the price of a house, with the help of credit and debt, into something many times its original size.

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The Gold Standard For Democrats

Keith Weiner describes how the Fed pushes down the interest rate and due to that, it drives up prices of food and rents. This implies that businesses are clearly priviliged against workers. The gold standard does the opposite, if prefers savings and workers. Hence Democrats should be fan of the gold standard.

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What Drives the Economy: Consumer Spending or Saving/Investment?

The concerted actions in September 2012 between the two big central banks reflected two fundamental economic principles: The Fed opted for Keynes' law, the ECB for Say's Law with conditionality. And apparently the ECB was successful.

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US Economic Indicators

The four best US economic indicators, in form of concurrent indicators, can be seen at Doug Short, here in detail.

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(3) Inflation, Central Banks and Interest Rates

In this chapter we connect three related concepts: inflation, central banks and interest rates.

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Fed FOMC: Who is Hawk, Who is Dove? 2015 Update

Composition of the Fed's Federal Open Market Committee (FOMC composition), needed to know if the Fed is opting for quantitative easing or not.

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Quantitative Easing, its Indicators and the Swiss Franc

The main drivers of demand for Swiss francs are the euro crisis and, even more, the behavior of American investors, who go out of the dollar in the fear of bad US economic data and/or Quantitative Easing (QE). Risk-friendly investors move into risky assets like stocks or currencies of emerging markets, while risk-averse investors fear inflation and buy inflation-resistant assets like Swiss francs.

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