Monday, February 18, 2019

Tag: Janet Yellen

Trump Prepares to Takeover Fed

In Donald Trump's first four years as president, he will not only choose three judges for the Supreme Court, he’ll also pick five of the seven members on the Fed Board of Governors. It would be impossible to overstate the effect this is going to have on the nation’s...

Trump Allies Urge Fed to Cut Balance Sheet and Revive Credit

Bond investors may have another reason to worry after Donald Trump's election last week: Some of his allies are not fans of the Federal Reserve’s big balance sheet of bonds and want the central bank to shrink it. They argue that the Fed's debt portfolio has damaged the economy by...

David Stockman: America Now Lives Under A Perverted Regime

The rise of Trump—and Bernie Sanders too—vastly transcends ordinary politics. In fact, it reaches deep into a ruined national economy that has morphed into rank casino capitalism under the misguided policies and faithless rule of the Washington and Wall Street elites. This epic deformation has delivered historically unprecedented set-backs to...

The Coming Bond Bubble Collapse

In this week’s podcast, Michael Pento, fund manager and author of The Coming Bond Bubble Collapse, explains how the United States is fast approaching the end stage of the biggest asset bubble in history. He describes how the bursting of this bubble will cause a massive interest rate shock that...

Fed’s Eric Rosengren Sees Reasonable Case for Gradual Rate Increases

Federal Reserve Bank of Boston president finds U.S. economy resilient despite drag from overseas. Federal Reserve Bank of Boston President Eric Rosengren said Friday that “a reasonable case can be made” for tightening interest rates to avoid overheating the economy. Holding rates at their current low level for much longer risks...

The Fed may be preparing for the unthinkable – negative interest rates in America

Negative interest rates are spreading like a virus. Central banks in the Eurozone, Switzerland, Sweden, and Japan all have below-zero policy rates. “NIRP,” as economists call a negative interest rate policy, is a desperation move—but the only move those central banks have. The Federal Reserve hasn’t followed—yet. When the next...

The Federal Reserve is living in a fantasyland

The Fed has failed. Indeed, only the world-historical disaster engineered by the nincompoops at the European Central Bank has made America's central bank — the Federal Reserve — look remotely good lately. For eight straight years, under Republican and Democratic leadership, the Fed has behaved like nothing has changed since the...

Yen Debate Is Stirred Up by Fed’s Hawkish Talk at Jackson Hole

Japanese currency has slid since gathering of Fed bankers last week, but major investors are still betting on yen to rise. Japanese policy makers eager to see the yen weaken may be thankful for the latest bout of hawkishness on U.S. interest rates from top Federal Reserve officials. For many market...

The Fed has yet to take monetary reform seriously

LARRY SUMMERS is right; this year's Fed symposium in Jackson Hole was triply disappointing. In the weeks before the gathering, members of the Federal Open Market Committee (FOMC) publicly discussed their worries that the current monetary framework might leave the Fed unable to deal adequately with future slowdowns. They...

Years of Fed Missteps Fueled Disillusion With the Economy and Washington

Once-revered central bank failed to foresee the crisis and has struggled in its aftermath, fostering the rise of populism and distrust of institutions. In the past decade Federal Reserve officials have been flummoxed by a housing bubble that cratered the financial system, a long stretch of slow growth they failed...

Quantitative easing useful when all else fails, says Fed official Loretta Mester

A top official from the US Federal Reserve says quantitative easing has "proven useful", but the likely path of US monetary policy is still for interest rate rises. Talk of further unconventional monetary policies globally has increased as Japan reaches the limit of what negative interest rates and quantitative easing...

Alan Greenspan wants the US to go back on the gold standard

"Under a gold standard, the amount of credit that an economy can support is determined by the economy’s tangible assets, since every credit instrument is ultimately a claim on some tangible asset. The abandonment of the gold standard made it possible for the welfare statists to use the...

Forget December. Forget Next Year. The Fed’s Done Hiking Until 2018

Circle Jan. 31, 2018, on the calendar. That’s the soonest the Federal Reserve hikes next. At least if money market derivatives are to be believed. Traders, who have consistently been better at projecting the path of interest rates than the Fed itself, are now pricing in a greater probability that policy...

The Fed Is Now More Likely to Cut Interest Rates Than Raise Them

Wall Street’s odds have reversed since the Brexit vote. Wall Street is betting Brexit will change the minds of the Janet Yellen and the Federal Reserve. Before Britain voted to leave the European Union last week, the majority of traders believed the Fed would raise interest rates at least once in...

U.S. Stocks Fall With Global Shares, Pound on Brexit; Gold Gains

The aftershocks of the U.K.’s vote to leave the European Union reverberated across financial markets after a weekend of political turmoil, with the pound extending its record selloff and European equities dropping to levels last seen in February. The S&P 500 dropped 1.8 percent to the lowest since mid-March, while...

Fed keeps interest rates unchanged, signals fewer future hikes

The U.S. Federal Reserve kept interest rates unchanged on Wednesday and signaled it still planned to raise rates twice in 2016, though it said slower economic growth would crimp the pace of monetary policy tightening in future years. The central bank's decision to stick with its 2016 rate path, however,...

U.S. Import Prices Rise at Fastest Pace Since 2012

May’s 1.4% jump indicates rising oil prices are contributing to firming domestic inflation. WASHINGTON—Prices for imported goods rose in May at their fastest pace in over four years, a sign that rising oil prices and the fading strength of the dollar are contributing to firming domestic inflation. May saw the third...

The central bank that cried wolf: The Fed’s credibility gap is getting wider

If Fed policy was a fairy tale, the title might be "The Central Bank That Cried Wolf." Investors have watched in bemusement as Fed officials throughout the past several years have warned that policy would change, only to back down at the slightest sign of turbulence. It now appears the...

Fed, again, left with egg on its face as recovery falters

All that hawkish Fed talk in recent weeks, as well as the market's knee-jerk reaction, seemed kind of silly after Friday's dismal jobs report. Expectations for a summer rate hike fell into a sinkhole Friday after the Labor Department reported that nonfarm payrolls grew by just 38,000 in May, amounting...

Janet Yellen’s $4.3 trillion ticking time bomb

The Federal Reserve has a big problem if it wants to raise rates again. It will have to pay U.S. and foreign banks enormous sums of money instead of U.S. taxpayers. Not only would the Fed likely draw the ire of Congress, but it could also become a target of...

Yellen, in Letter, Does Not Rule Out Negative Interest Rates

Fed chief also shoots down possibility of helping Detroit or Puerto Rico. Federal Reserve Chairwoman Janet Yellen said Tuesday the Fed wouldn't rule out using negative interest rates to boost the economy but she cautioned such a move would have to be carefully studied. “While I would not completely rule out...

Janet Yellen’s Bluff and Mario Draghi’s Hubris

The monetary landscape of today looks pretty grim. We are in the middle of the perennial decline in the rate of interest. Central bankers are convinced they can get us all out of this mess. But can they really? Janet Yellen timidly tried to go against the decade long trend...

Gold Lovers Bet Party Isn’t Over After 17% First-Quarter Surge

Even after a lackluster March, money managers are betting the best-performing commodity last quarter still has further to run. While gold futures have dipped from a 13-month high, hedge funds are the most bullish since January 2015. The precious metal posted its biggest quarterly advance in three decades as turbulent...

China’s yuan set for biggest quarterly gain since Sept 2014

SHANGHAI: China's yuan is poised for its biggest quarterly gain since September 2014, underpinned by firmer central bank guidance as the country's financial markets continue to stabilise and the dollar loses momentum. Federal Reserve Chair Janet Yellen's cautious view on U.S. rate hikes this week, which dampened views of other...

Yellen Outsources U.S. Monetary Policy to the Financial Markets

The Federal Reserve looks to have outsourced monetary policy to the financial markets -- and that may not necessarily be bad. Fed Chair Janet Yellen told the Economic Club of New York on Tuesday that policy makers had scaled back the number of interest rate increases they expect to carry...

The Impact of the Federal Reserve on Oil Markets

OPEC policy, fresh data from agencies such as the IEA and the EIA, price speculators, and geopolitical disruptions are all known as market movers. But there’s another important player in oil price movements, and that’s the Federal Reserve. With oil and other markets so sensitive to a variety of headlines,...

China rules out weakening yuan to boost trade

SHANGHAI - China's central bank chief promised Friday to avoid weakening its yuan to boost sagging exports as he tried to reassure nervous financial markets about his government's handling of its economy and currency at the start of a closely watched gathering of global finance officials. Beijing wanted to use...

Will the U.S. Break This Fundamental Law of Finance?

Economists long said it couldn’t be done. But the Bank of Japan is doing it, as are central banks in Switzerland, Sweden, and Denmark. So is the European Central Bank. And U.S. Federal Reserve Chief Janet Yellen won’t rule it out. The “it” in question is setting negative interest rates...

Reform the Fed

Janet Yellen has betrayed the American people and will go down as one of the worst chiefs of the Federal Reserve in history. Her decision to raise interest rates earlier this week guarantees a continuing weak recovery, suppressed wages, and entrenched inequality. In response, the left should add a central...
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Jim Rickards on the FED, Helicopter Money, and Chinese Devaluation

Boom Bust’s Edward Harrison interviews Jim Rickards, editor of Strategic Intelligence and author of “The Death of Money.” Jim offers his analysis of the IMF’s decision to classify Russia’s $3 billion loan to Ukraine as ‘intergovernmental,’ and why the Federal Reserve should have raised interest rates years ago instead...

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