<Click on chart for larger image> Real Time Economics (WSJ Blog) – St. Louis Fed’s Bullard: Appropriate to Think Fed Will Wait to Raise Rates It is appropriate to think the Federal Reserve won’t raise interest rates at its June policy meeting following a recent run of weak economic data, Federal Reserve Bank of St.… Continue reading Timing The First Rate Hike
Bernanke's series: 'why are rates so low' came out just before bond mkt collapsed. Now reckons stock prices reasonable. You've been warned. — Five Minute Macro (@5_min_macro) June 3, 2015 Comment Ben Bernanke started blogging on March 30 with this first post. Brookings.edu – (March 30, 2015) Why are interest rates so low? Interest rates… Continue reading Is This How To Use Bernanke’s Advice?
<Click on chart for larger image> Bloomberg.com – Bill Gross Sets His Sights on This Chinese Stock Market One of the world’s most famous bond investors can’t take his eyes off Shenzhen’s stock market. Bill Gross, busy building his new Janus Global Unconstrained Bond Fund amid a global rout in debt markets, took to Twitter… Continue reading Bill Gross Looks For Next Big Short In China
Bloomberg.com – Draghi Says QE Working Well; Seeks ‘Full Implementation’ Mario Draghi said record monetary stimulus is filtering through to the economy on schedule and insisted the European Central Bank needs to see its bond-buying plan through to the finish. “The asset-purchase programs are proceeding well,” the ECB president said at a press conference in… Continue reading Draghi Speaks
Real Time Economics (WSJ Blog) – Nine Reasons Why Fed Economists Think Americans Aren’t Getting a Raise Federal Reserve economists aren’t sure why U.S. wage growth has been subdued over the last few years, or when pay raises will definitively move into higher gear. But they’ve spilled a lot of ink trying to find out.… Continue reading Wage Growth
Charts of the Week Topics Covered This Week Include: Bond Market Volatility, Liquidity or Extreme Positions? Bond Market Volatility, Liquidity or Extreme Positions? – 2 Picking and Choosing The Economic Releases That Fit Your Narrative Bernanke Says Inequality Is Not A Fed Problem Booming M&A About Car Sales Crude Oil Production Ramps Up Another Sign… Continue reading Charts of the Week
Comment Click here to register.
The Financial Times – Warnings over oil debt are getting louder Banks have been cutting exposure to the industry and conversations about borrowing will get tougher Identify this very large industry: it has about $2.5tn of debt outstanding, a good chunk of which is considered junk by the credit rating agencies. About half the debt… Continue reading Crude Oil
<Click on graphic for large image> The Wall Street Journal – ICAP Weighs Treasurys-Trading Controls Turbulent government-bond markets are prompting one large brokerage firm to consider installing circuit breakers ICAP PLC is studying the possibility of temporarily halting Treasurys trading following large price moves, according to people familiar with the matter. Such a program would… Continue reading Bond Volatility
Real Time Economics – Fed Officials Should Pay the Bond Market Less Mind, Jeremy Stein Says Messrs. Stein and Sunderam study transcripts of Federal Open Market Committee meetings and find “an increasing emphasis over time by the FOMC on financial-market considerations.” They say the Fed’s “gradualism” in raising interest rates became so clearly telegraphed during… Continue reading Jeremy Stein Speaks
Bloomberg Business – Goldman Sachs to Companies: Stop Buying Back Your Stock While the billionaire activist investor has continued to push Apple to purchase more of its stock, Goldman has published a note recommending companies stop spending their cash on buying back their overpriced shares and instead use those overpriced shares to buy other companies’… Continue reading Stock Buybacks