Reuters – Greece, markets welcome loan deal as Spain and Germany raise obstacles Greece welcomed on Friday a deal on new bailout loans as a decisive step to exiting its debt crisis and markets took heart by lowering Greek borrowing costs, even though Spanish and German officials raised last-minute objections. Euro zone governments threw Greece another… Continue reading Greece Reaches A New Deal With Its Creditors
Bloomberg Businessweek – The Man Who Ran the Bank Bailout Is the Fed’s Toughest Internal Critic In 2008, as interim assistant secretary of the Treasury for financial stability, Neel Kashkari oversaw the bailout of the country’s biggest banks. So this April, when JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon declared in his annual shareholder… Continue reading How Neel Kashkari Criticizes The Fed
Bond bears, upon hearing GDP will be very good, with figures about six weeks away from publication. pic.twitter.com/Wtvr9XHbeG — Brian Chappatta (@BChappatta) June 15, 2017
Comment Jim Bianco was on CNBC yesterday discussing the fed hike. To view the interview, click on the image above. To view any of our recent interviews, click here. The Wall Street Journal – Fed Raises Rates, Sets Out Plan to Shrink Asset Holdings Beginning This Year The Federal Reserve said it would raise… Continue reading The Fed Raises Rates
Seeking Alpha – Is The Fed Done For The Year? Wednesday’s most recent tightening puts the federal funds target range at 1.0% to 1.25%. FOMC officials predict the central bank will raise the rate to 2.9% by the close of 2019, according to its dot plot survey. The Fed’s dot plot illustrates the funds rate… Continue reading The Market vs. The Fed
FT Alphaville – Snap AV: A more detailed look at the Fed’s balance sheet plan When the Federal Reserve starts shrinking its securities stockpile — expected later this year — it doesn’t want to cause too much market volatility. So instead of selling bonds, they decided to stop reinvesting principal from maturing bonds. Easy, right? Well, not… Continue reading The Fed’s Balance Sheet Plan
The Washington Post – Larry Summers: 5 reasons why the Fed may be making a mistake While I do not believe the Fed made a serious mistake Wednesday in raising rates, I believe that the “preemption of inflation based on the Phillips curve” paradigm within which it is operating is highly problematic. Much better would be… Continue reading Either The Fed is Making a Mistake or Inflation Expectations are Severely Depressed
The Wall Street Journal – Parsing the Fed: How the June Statement Changed From May The Federal Reserve releases a statement at the conclusion of each of its policy-setting meetings, outlining the central bank’s economic outlook and the actions it plans to take. Much of the statement remains the same from meeting to meeting. Fed… Continue reading Understanding Fedspeak
Bloomberg – Why Goldman Isn’t So Worried About Emerging Markets and the Fed EMs, excluding China, paring credit-to-GDP gaps: Jane Wei Developing nations, excluding China, saw their aggregate annual credit-to-gross domestic product ratio slip one percentage point to 125 percent by the end of last year, the first time the group has deleveraged since the… Continue reading Emerging Markets During Tightening Campaigns
Zero Hedge – Illinois’ Economic Growth Is Worse Than During The Great Depression Illinois’ total state economic activity has increased by only 4 percent since 2007, which is lower than the U.S.’ 10 percent GDP growth during the worst decade of the Great Depression. There are fewer Illinoisans working today than there were 10 years… Continue reading A New Low For Illinois
Bloomberg – El-Erian Sees Risk of Growth Below 2% as Trump’s Agenda Stalls Mohamed El-Erian, Allianz SE’s chief economic adviser, said political turmoil in Washington is raising the risk that President Donald Trump and lawmakers will be unable to coordinate efforts to promote economic growth. “The unknown is whether the technical work that’s going on,… Continue reading El-Erian Doubts The Trump Reflation Story
The Wall Street Journal – Investors Play the Risky Role of Lender Desperate to increase returns, some of the world’s most conservative investors are taking bigger risks by aping banks and lending directly to companies. In recent years, there has been a surge in investments from pension funds and life insurers into specialist asset managers… Continue reading Reaching For Yield Through Lending