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December 18, 2015
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The Federal Reserve – Press Release: December 16, 2015 Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will continue to expand at a moderate pace and labor market indicators will continue to… Continue reading The Traditional FOMC Statement
The Federal Reserve – Decisions Regarding Monetary Policy Implementation “Effective December 17, 2015, the Federal Open Market Committee directs the Desk to undertake open market operations as necessary to maintain the federal funds rate in a target range of 1/4 to 1/2 percent, including: (1) overnight reverse repurchase operations (and reverse repurchase operations with maturities… Continue reading The Fed Actually Released Two Statements Yesterday
The New York Times – Fed Raises Key Interest Rate for First Time in Almost a Decade The Federal Reserve said on Wednesday that it would raise short-term interest rates for the first time since the financial crisis, a decision it described as a vote of confidence in the American economy even as much of… Continue reading Why Did The Fed Hike?
Federal Reserve Bank of New York – Statement Regarding Overnight Reverse Repurchase Agreements During its meeting on December 15–16, 2015, the Federal Open Market Committee (FOMC) directed the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York (New York Fed), effective December 17, 2015, to undertake open market operations as… Continue reading The Fed’s Overnight Reverse Repo Facility
The Wall Street Journal – Fed Forecasts Show Only Small Changes to Officials’ Outlook Federal Reserve officials said Wednesday they expect a more gradual pace of short-term interest rate increases in coming years than they did three months ago. They also tweaked very modestly their views on the outlook for the economy, according to forecasts… Continue reading The Market Versus The Fed, Four Rate Hikes
The Wall Street Journal – Up From Zero The Federal Reserve will pay bailed-out banks more money not to lend. Financial markets took the Federal Reserve’s interest-rate “liftoff” from near-zero in stride on Wednesday, broadly celebrating the 25 basis point increase in the federal-funds rate. Then again, maybe investors cheered because the Federal Open Market… Continue reading Will IOER Become Too Political?
<Click on graphic for larger image> The Wall Street Journal – Investors Turn Focus to Global Economy After Fed Rate Move Many are concerned about how markets will react as U.S. monetary policy diverges from that of other large economies The Federal Reserve interest-rate increase leaves unaddressed two riddles vexing investors: How healthy is the… Continue reading Short-Term Market Reactions
<Click on graphic for larger image> Bloomberg.com – This Fed Move Is Different as UBS Sees Pain in Emerging Markets Assets haven’t adjusted to weaker growth even after losses Emerging markets not cheap with lower earnings and higher debt Historically, interest-rate increases from the Federal Reserve have been buy signals for emerging-market assets. This time… Continue reading Emerging Markets
<Click on graphic for larger image> Bloomberg.com – Billionaire Sam Zell Says Recession Likely in Next 12 Months Fed rate hike should have happened six months ago, he says Investor seeking opportunities to buy distressed energy assets Billionaire investor Sam Zell said the U.S. economy could go into a recession in the next year and… Continue reading Recession Calls
Bloomberg.com – Fraud, $57 Million in Losses in 2 Weeks and Not Yet 30 Years Old Canarsie Capital founder apologized to his 41 investors Li faces 20-year maximum prison term on most serious charge Canarsie Capital founder Owen Li managed to lose $57 million in two weeks, leaving his investors with only $200,000 and a… Continue reading They Are Professionals, Do Not Attempt This At Home
The Wall Street Journal – Beijing Probes Architects of Stock-Market Rescue Having already investigated investors and brokerages in connection with a bungled summer stock-market rescue totaling more than $200 billion, Beijing is now probing the rescuers. Communist Party graft busters are investigating whether officials inside the China Securities Regulatory Commission used their knowledge of the… Continue reading More On Financial Corruption In China