Real Time Economics (WSJ Blog) – Fed’s Yellen: Recent U.S. Inflation Data on High Side, But Noisy Recent data on U.S. inflation have been “a bit on the high side,” but generally provide evidence that price levels are moving back toward the Federal Reserve‘s 2% target, Fed Chairwoman Janet Yellen said Wednesday. “Recent readings on,… Continue reading Yellen Dismisses Inflation Concerns
Bloomberg.com – Fed Dishes Out Continuity The outcome of today’s Federal Reserve meeting was largely as expected, with the world’s most powerful central bank maintaining a steady-as-she-goes policy approach and, in the process, sidestepping yesterday’s market excitement following the higher-than-expected monthly inflation report. And markets, both bonds and equities, loved the policy continuity. But the… Continue reading El-Erian’s Take On Yesterday’s FOMC Meeting
The Financial Times – US share buybacks and dividends hit record US share buybacks and dividend payments climbed to a record level in the first quarter of 2014, as companies chose to boost shareholder returns in the absence of robust revenue growth…The moves came as many companies remained reluctant to spend their cash on expansion… Continue reading Stock Buybacks
Real Time Economics (WSJ Blog) – U.S. Workers Can’t Get No (Job) Satisfaction Fewer than half of American workers were satisfied with their jobs in 2013, according to a new survey from the Conference Board. In almost every individual measure—from wages and retirement plans to vacation policies and commutes—workers are less content with their jobs… Continue reading The Jobs Market
Bloomberg.com – Slowing Down the Stock Market Many a fortune has been won (and lost) in the U.S. stock market. The market’s primary purpose, though, is not to dispense riches but to serve the public good by allocating capital to the best uses — to the ideas most likely to drive sales, earn profits and… Continue reading Combating HFT
Bloomberg.com – Is the Fed Complacent? Federal Reserve Chair Janet Yellen says she’s aware of the dangers of complacency in financial markets. Complacency at the Fed can be dangerous, too. In a news conference today, Yellen explained that monetary policy will stay on the course previously announced. That’s fine: Macroeconomic conditions haven’t changed. But she… Continue reading Volatility
<Click on chart for larger image> The Wall Street Journal – Oil Rises On Stockpile Drop, Iraq Tensions Crude-oil futures edged higher in Asia Thursday after overnight data showed a small drop in U.S. weekly oil stockpiles and as events in Iraq continue to play out…The two global oil benchmarks had diverged overnight, with Nymex… Continue reading Gas Prices
Conference Call Presentation/Charts of the Week Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/061914.mp3|titles=Conference Call ] Topics Covered This Week Include: Sentiment Is Bearish Eurodollar CoT Report Spot The Taper Tantrum Falling Yields The Bond Rally In Perspective More Subpar Growth US Economy US Surprise Indices Why Is The Fed Tapering? The Fed Meeting End Of Forward Guidance And On To… Continue reading Conference Call Presentation/Charts of the Week
The Wall Street Journal – Jon Hilsenrath and Victoria Mcgrane: Will Holding Down Rates Spark Inflation Without Helping the Long-Term Unemployed? Officials Debate How to Spur Jobs Without Stirring Inflation Four years ago, 6.8 million Americans were out of work for six months or longer. Half as many are now. That might sound like good… Continue reading The Fed’s Decision Is Today
The Wall Street Journal – HILSENRATH’S TAKE: WHY THE MARKET DOUBTS FED RATE DOT PLOT Investors don’t seem to believe Federal Reserve officials when they project that short-term interest rates will reach 1% by late 2015 and 2.25% by late 2016. Those are the medians of interest rate forecasts Fed officials made public in March.… Continue reading More On The Fed’s Dot Charts
Mish’s Global Economic Trend – Wages vs. Real Wages Over Time: How the Fed Helped Destroy the Middle Class in Pictures Demise of the Middle Class The Fed wants 2% inflation. It achieved that (and then some) especially if we add in the price of houses and various taxes. Who benefited? The answer is Wall… Continue reading How The Fed Destroyed The Middle Class