Newsclips
Cartoons
September 19, 2013
Bernanke saves the day yet again…
Bernanke saves the day yet again…
Real Time Economics – What to Expect From the Fed Today 1) To taper or not to taper, that’s the big question. Fed officials will decide whether to start winding down an $85 billion-a-month bond-buying program. Many officials were still undecided after seeing the so-so August jobs report earlier this month. Other economic data have… Continue reading The Federal Reserve Meets Today
CNBC – Market expects $15 billion Fed taper soon The market is agreed: It’s Yellen and a taper. The latest CNBC Fed Survey finds that in the absence of Larry Summers, 88 percent of market participants expect President Barack Obama to nominate Vice Chair Janet Yellen to be the next Fed chair. Most of the… Continue reading CNBC’s Federal Reserve Survey
The Financial Times – Robin Harding: How would the Fed taper? Designing a taper The first thing to note is that the FOMC did the hard part in June when it set out a tapering scenario that would see asset purchases end in the summer of 2014 with an unemployment rate of about 7 per… Continue reading Taper Tactics
<Click on chart for larger image> China Daily – Beijing buys more US Treasury securities In a sharp reversal from a June sell-off, China boosted its holdings of US Treasury securities by $1.5 billion in July to retain its lead as the United States’ largest foreign creditor, the US Treasury said. Japan, moving to keep… Continue reading China Buys U.S. Treasuries In July
The Financial Times – Martin Wolf: We still live in Lehman’s shadow The bank’s collapse was but a symptom of the looming crisis Both the past and future of our financial system remain as poisonous a topic as they were five years ago, when Lehman Brothers failed. That is a lesson to draw from the… Continue reading Living In Lehman’s Shadow
CNBC – With the end of Fed’s quantitative easing in sight, US public says ‘Huh?’ The Federal Reserve this week is expected to start winding down an epic economic stimulus that is credited with helping the United States claw back from the deepest slump since the Great Depression. The Fed’s $2.8 trillion “quantitative easing” program… Continue reading What’s QE Anyway?
Bloomberg Businessweek – Fall in Home Loans Pushing Fed Away From Taper in Mortgage Bonds “There’s a fair degree of consensus that MBS purchases are more effective than Treasuries in terms of stimulating activity,” said Gapen, who expects the Fed to reduce monthly purchases by $10 billion in Treasuries and $5 billion in mortgage bonds.… Continue reading Will The Drop In Home Loans Influence The Federal Reserve?
The Wall Street Journal – Fed Tapering or Not, Asset Prices Are Safe For Now As this summer’s emerging markets crisis shows, when inflation hits all other bets are off. Central bankers in Indonesia, India, Turkey and Brazil have all struggled to contain burgeoning inflation by raising interest rates. Of course, inflation in these economies… Continue reading Asset Prices
None Today
The Wall Street Journal – Jon Hilsenrath: Fed Faces Tough Sell on Low-Rate Strategy Federal Reserve officials face a communication challenge explaining their interest rate plans when they gather for a policy meeting this week. Their updated economic projections could show an economy that appears back to normal by 2016, but their projections of where… Continue reading The Federal Reserve Continues To Avoid Taper Talk
Bloomberg.com – RESEARCH ROUNDUP: FOMC Tapering and Forward Guidance Outlook (no link) Views on Fed taper, forward guidance, Lawrence Summers withdrawal and UST trade recommendations before this week’s FOMC meeting, which starts tomorrow. Barclays – Small first taper, coupled with no modification to forward guidance and likely Fed projection of median fed funds rate of… Continue reading The Big Banks Offer Their Taper Estimates