Archive for the ‘Central Banks’ Category
Steve Liesman of CNBC reports that the FOMC had an extensive discussion of exit strategy at its meeting last week, more in depth than Bernanke let on at the Wednesday press conference.
A change in language, followed by a change in the reinvestment strategy would be the early signs of exit by the Fed. Everything was [...]
Risks include:
Sovereign debt and associated imbalances
Unsustainable patterns of demand
Sentance leaves the Bank of England Monetary Policy Committee (MPC) after its next meeting…
Germany’s Bild tabloid endorsed Bank of Italy chief Draghi, helping ease his path toward the top-spot at the ECB in Frankfurt. His qualifications for the job? He used to work at Goldman, of course…
Economy far from where we would like to be
Economy is in moderate recovery; recent improvement in labor market
High unemployment contributing to problems in housing market
Housing market holding economy back
I assume he refers to the sovereign debt crisis, though the headline is not specific…
Italy needs significant spending curbs to fix public finances
The presumptive next head of the ECB, when Draghi talks, we listen…
EUR/USD is finding good buying on dips to the 1.4775/80; sellers on rallies toward 1.4840/50…rinse, repeat.
In shifting their focus to interest rates, forex traders have perhaps overlooked one very important monetary policy event: the conclusion of the Fed’s quantitative easing program. By the end of June, the Fed will have added $600 Billion (mostly in US Treasury Securities) to its reserves, and must decide how next to [...]
While saying the Fed will end the present QE2 program in June, the FOMC did not slam the door on any notion of QE3…It left itself a great deal of rhetorical wiggle room, which is being seized on by dollar bears and inflation bulls.
To promote a stronger pace of economic recovery and to help ensure [...]
Policy is for region as a whole
Liikanen tells German newspaper FAZ that that the ECB will prevent second-round inflation effects (wage hikes tied to inflation) . A Greek debt restructuring would not help fundamental economic problems, he says.
Inflation pressures in emerging economies is impacting the eurozone, complicating monetary policy, Liikanen says.
