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,

Read more >

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,

Read more >

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.’

Read more >

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!

Read more >