Central Bank Rants

Schizophrenic #FOMC

How to reconcile these two recent comments from Janet Yellen? ‘Because a resilient financial system can withstand unexpected developments, identification of bubbles is less critical.’ (2 July) ‘While prices of real estate, equities, and corporate bonds have risen appreciably and valuation metrics have increased, they remain generally in line with historical norms. In some sectors,…

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Why Yellen is King not Carney

Given the Humphrey-Hawkins testimony only comes but twice a year, it’s no wonder that financial markets expect some kind of signal from the Chair of the Federal Reserve. They only have a certain number of interest rate-setting meetings per year, and with a speech they can deliver much more of a nuanced message. Indeed, in…

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Carney ‘are you getting the message yet’?

Spot the difference: Carney tells 5 News: ‘“We expect interest rates are going to start to increase [but] they’re not going to go to the levels they did in the past and they’re going to go there slowly.’ Radio 4 interview: ‘ “When we get back to normal, the old normal is not the new normal….

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Quality quotes from new BOE MPC member #andrewhaldane

Andy Haldane joined the MPC this month after all his financial stability work (which might come in useful). Some choice quotes below from his first big speech – and if you like cricket you really should read it all!. He even uses the expression that businesses have rediscovered their mojo. Ever heard that from a central…

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When is a kitchen sink not a kitchen sink?

Negative depo rates! A fixed rate 4yr LTRO with 10bp spread and few conditions attached that could be worth 1.2trillion Euros! Extending fixed allotment! Extending collateral eligibility! Suspending (the supposed shibboleth) of sterilisation of SMP!   And… The Euro ends the day where it started. The Bund and Eurostoxx just about rally. Vols sell off….

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