<Click on graphic for larger image> Boston Fed – Does Fed Policy Reveal a Ternary Mandate? Although the creation of the Federal Reserve in 1913 was, in part, a response to repeated episodes of financial instability, the Fed is usually described as having a dual mandate, targeting low inflation and full employment. Even so, many would… Continue reading Financial Stability: The Fed’s Third Mandate
The Financial Times – BoE to buy corporate debt in latest QE round The Bank of England will start buying corporate bonds on Tuesday when it launches its latest version of quantitative easing aimed at boosting the private sector. The bank will conduct three “reverse auctions” this week, each aimed at buying the bonds from particular… Continue reading More On Central Banks Buying Corporate Debt
The Financial Times – What do markets think will happen to Deutsche Bank? Deutsche Bank’s shares have touched their lowest level in more than two decades with the German lender at the centre of an intense market sell-off, reflecting concern over a looming fine from the US government. While the bank’s balance sheet is notoriously difficult… Continue reading Deutsche Bank
The Financial Times – Pain felt by Japanese banks finally wakes up the BoJ The muscle of banks persists across all markets, contrasting with that of others in the financial community There were plenty of warning signs that the Bank of Japan’s policy of negative interest rates was doomed. The first — and most immediate —… Continue reading Negative Rates Hurt In Japan
Bianco Research – Tonight’s Debate – The Winner Could Lead The Polls Right now Clinton leads Trump by 2.3% according to the Real Clear Politics Average. This is the tightest race entering the first debate since 1980. An Objective Way To Judge Tonight’s Debate The Clinton/Trump PredictIt.org betting board on our website updates every three… Continue reading Judging Tonight’s Debate
Comment Jim Bianco was on CNBC with Rick Santelli on Friday discussing global monetary policy. To view the interview, click on the image above. To view any of our recent interviews, click here. In the interview Jim made the case that all central bank stimulus if fungible. In other words, all central bank stimulus needs… Continue reading All Central Bank Stimulus Is Fungible
Bloomberg Business – Pension Funds’ Liquid Gold But ETFs are increasingly becoming the market when it comes to $1.4 trillion of U.S. high-yield bonds. Consider this: Kevin McGrath, who manages money for the New Jersey Division of Investment, said that ETFs can account for up to 30 percent of the pension’s internal high-yield debt exposure. Right now,… Continue reading Are ETFs The Tail Wagging The Dog?
Two-party presidential polling before and after the first presidential debate, 1960-2012 Notes: Based on an average of the two-party presidential vote in polls in the week before the first debate and the week after. If the second debate fell inside the week after the debate, the period after the first debate was measured up to… Continue reading Tonight’s Debate – The Winner Could Lead The Polls
<Click on graphic for larger image> <Click on graphic for larger image> The New York Federal Reserve – Nowcasting Report The FRBNY Staff Nowcast stands at 2.3% and 1.2% for 2016:Q3 and 2016:Q4, respectively. Negative news since the report was last published two weeks ago pushed the nowcast down 0.5 percentage point for both Q3… Continue reading GDP Nowcast Heading Lower
<Click on chart for larger image> <Click on chart for larger image> The Wall Street Journal – Profit Slump for S&P 500 Heads for a Sixth Straight Quarter The third quarter was supposed to be when earnings growth returned to U.S. companies. Not anymore. Companies in the S&P 500 are now expected to report an… Continue reading A Sixth Straight Quarter Of Declining Earnings Expected For Q3
<Click on graphic for larger image> The Federal Reserve Bank of St. Louis – Wages with benefits Nominal wages generally increase, but the picture is mixed for real wages. The green line in the top graph shows real wage growth, which is negative a fair amount of the time. Bursts in inflation can counteract the… Continue reading Consider Total Compensation When Looking At Wage Growth