Bloomberg.com – Banned Trader Did BOE’s Job For It, but Too Well Here is a U.K. Financial Conduct Authority action against a former Credit Suisse trader who manipulated gilt prices during a Bank of England quantitative easing auction in 2011. The trader, Mark Stevenson, was fined 662,700 pounds and banned from the industry, and, fair… Continue reading Using QE To Make Money Off The Central Bank
Institutional Investor – The Verdict of Global Markets on Ukraine: We Don’t Care Some analysts are negative on emerging markets — but for reasons other than the crisis between Russia and Ukraine.In this era of instant financial and economic contagion, a butterfly’s wing flapping in Greece or Thailand can send reverberations through stock exchanges in… Continue reading Ukraine, Not Priced In
Project Syndicate – Robert J. Shiller: The Global Economy’s Tale Risks Fluctuations in the world’s economies are largely due to the stories we hear and tell about them. These popular, emotionally relevant narratives sometimes inspire us to go out and spend, start businesses, build new factories and office buildings, and hire employees; at other times,… Continue reading Risks To World Growth
Brookings.edu – Are the Long-Term Unemployed on the Margins of the Labor Market? The long-term unemployed have problems finding work wherever they are, even in states with the lowest unemployment – Hawaii, Iowa, Kansas, Minnesota, Montana, Nebraska, New Hampshire, North Dakota, Oklahoma, South Dakota, Utah, Vermont, Virginia, and Wyoming – where the average unemployment rate… Continue reading What Happens To The Long-Term Unemployed?
Comment Today at 9 AM CT (10:00 AM ET, 7:00 AM PT, and 14:00 GMT), Bianco Research, in conjunction with Arbor Research & Trading, will be hosting a webcast/teleconference moderated by Jim Bianco. Join us today as we discuss the weather, geopolitics, the Fed and the economy to decipher the degree to which each is… Continue reading Which Crosscurrents Are Affecting The Markets Most?
[pageview class=”PDFViewer” url=”https://www.biancoresearch.com/bianco/wp-content/plugins/PDFViewer/plugin.php?id=176″] The Wall Street Journal – Fed Tweaks Rate Guidance, Lessening Weight on Unemployment Rate Bond-Buying Program Cut by Another $10 Billion The Federal Reserve on Wednesday altered its guidance on the likely path of interest rates, putting less weight on the unemployment rate as a signpost for when rate increases will start,… Continue reading The FOMC Statement
Real Time Economics (WSJ Blog) – Fed Dropping Numbers-Based Guidance Ends Policy-Making Experiment The Federal Reserve’s decision Wednesday to move away from numbers-based guidance about the timing of future interest rate increases has closed the door on what many economists see as a successful, if imperfect, experiment in monetary policy making. On Wednesday, the Fed… Continue reading The Fed Abandons Forward Guidance
<Click on chart for larger image> The Wall Street Journal – Yuan Falls Farther, but Ride May Be Nearly Over China’s yuan fell to its lowest level against the U.S. dollar in more than a year, as signs of tighter U.S. monetary policy benefited Beijing’s recent campaign to deter speculative capital inflows by weakening its… Continue reading The Yuan
<Click on chart for larger image> The Financial Times – Fed opens its doors wider to repo trading The Federal Reserve has assumed a much bigger role in a key funding market that has long been a prime component of the unregulated shadow banking system. The growing presence of the Fed, at the expense of… Continue reading The Fed’s Takeover Of The Repo Market
Real Time Economics (WSJ Blog) – Yellen Suggests Roughly 6 Month Gap Before Rate Increases After QE Ends Federal Reserve Chairwoman Janet Yellen on Wednesday said interest-rate increases could begin in the first half of 2015, around six months after it winds down its bond-buying program. The Fed, in its policy statement, said the benchmark… Continue reading Yellen Defines ‘Considerable Period’ As 6 Months
Gross: Do the “blue dots” matter? Yellen says look at the statement. Problem is, the market is looking at the dots. — PIMCO (@PIMCO) March 19, 2014 <Click on chart for larger image>