Posts Tagged ‘Fed’s’
A Twist on How to Play the Fed’s Newest Gambit
by Jason Jenkins, Investment U Research
Thursday, September 22, 2011
On Wednesday, the Federal Reserve announced it would proceed with a new $400-billion program that will tilt its $2.85-trillion balance sheet more to longer-term securities by selling shorter-term notes and using those funds to purchase longer-dated Treasuries.
It’s rationale?
The [...]
On the flip side, the Cleveland Fed’s Pianalto says the labor market is still a long way from where it needs to be.
As noted yesterday, Kotcherlakota is a voter and he voted to maintain the status quo at the last FOMC meeting despite his tough talk…
Also on the wires, the Fed’s Lockhart (Atlanta) says he [...]
Going on hold would give FOMC time to reassess
May keep rates near zero while on hold
Hold may keep “extended period” phrase intact
Confident US can weather oil shock without slowdown
Financial conditions have eased considerably
On hold near zero ain’t the greatest thing every to happen to the dollar…beats more QE though…
If US fiscal policy is tightened (budget cut), monetary policy will have to be looser for longer
That sound you hear is fiscal conservatives vomiting after hearing those two comments back-to-back…
EUR/USD is firm, at 1.4918.
Small 1.4925 and larger 1.4950 exotic triggers are rumored.
Fed should take away extended period pledge
Delayed Fed rate rise may fuel inflation impulses
Total inflation what I worry about; was up pretty dramatically in CPI
Should be the most interesting FOMC meeting in years the weak after next…
Economy on the mend
need to ensure oil prices don’t boost general inflation rates
Does not believe US in imminent inflation danger
Fed bonds sales would put pressure on markets
Fed would need to sell bonds at a gradual pace
Fed and ECB polices are appropriate given domestic conditions
QE2 has worked to push down long-term yields
Still work to be done on Fed’s exit strategy
Mortgage-backed securities should be first one’s sold
Risks of inflation have increased
Calls for smaller government role in mortgage market
I like the the cut of that man’s jibe, by George…
Not sure if its true, but it is memorable line nonetheless…
EUR/USD has dipped to the 1.4070 level as its earlier bounce faltered in the low 1.4080s.
