Tagged: Fed

Who are you going to believe?

Compare and contrast – Last night’s Fed Minutes from the Jan 27-28 meeting: ‘Many participants indicated that their assessment of the balance of risks associated with the timing of the beginning of policy normalization had inclined them toward keeping the federal funds rate at its effective lower bound for a longer time.’ Fed’s Williams interview…

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The Day Today 19 Feb 2015

* ECB give Greece an extra 3.3bn EUR in ELA, to be reviewed in 2 weeks * Fed Minutes: prefer to keep rates lower for longer (Hilsenrath), and dollar strength “expected to be a persistent source of restraint” on exports * They also discussed looking at “trimmed mean measures of inflation” as deflation has been…

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Now you’re gonna believe us!

The Fed’s Williams has given a remarkably clear interview in today’s FT, which sets us up nicely for the Fed Minutes this Friday and then Yellen’s testimony on February 24th. He couldn’t sound more relaxed about the oil price fall, a stronger dollar or lower US yields, and his main obsession is pointing out how…

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And what of the Fed?

Today’s payrolls number is in some ways irrelevant to the future fortunes of the dollar. The employment picture has been improving, and yet market expectations have pushed back the first Fed hike, with it now priced by October. In the wake of the oil price collapse, the focus has instead turned to inflation. Of course,…

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Hands up if you’re not easing, Part 372

The RBNZ ditched their reference to the fact that rate rises might be required in future, instead saying only that they expect to be “on hold for some time”. They warned again that the level of the NZD was ‘unjustifiable’ and ‘unsustainable’ and the currency duly dropped to four year lows against the dollar. And what…

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