Tag Archives: Central Banks
Central Banks
The Growth in Central Banks’ Balance Sheets
The Growth in Central Banks’ Balance Sheets
Posted By Greg Blaha
Updating the growth in central bank balance sheets... Read More
Central Banks
Understanding Fedspeak & the Summary of Economic Projections
Understanding Fedspeak & the Summary of Economic Projections
Posted By Greg Blaha
The Fed let it be known that they are committed to keeping rates at zero for the next few years, if need be.... Read More
Central Banks
Will the Fed Go Negative?
Will the Fed Go Negative?
Posted By Jim Bianco
Jay Powell insists the Fed will not resort to negative rates. He is sincere, but the market is beginning to have other thoughts and may force his hand.... Read More
Central Banks
Central Bank Balance Sheets Continue to Grow
Central Bank Balance Sheets Continue to Grow
Updating the growth in central bank balance sheets... Read More
Central Banks
Combined Central Bank Balance Sheets
Combined Central Bank Balance Sheets
Posted By Jim Bianco
Growth is booming to new highs... Read More
Central Banks
The Market Is Expecting the Fed to Cut 50 Basis Points Tomorrow Morning
The Market Is Expecting the Fed to Cut 50 Basis Points Tomorrow Morning
Posted By Jim Bianco
S&P futures opened 60 points lower (1.9%), but have reversed to positive on the day. The market has priced in a 50 bps cut for tomorrow morning.... Read More
Central Banks
How Accurately Do FOMC Minutes Reflect a Meeting?
How Accurately Do FOMC Minutes Reflect a Meeting?
Posted By Greg Blaha
How accurately do the FOMC minutes, which are released only a few weeks after a meeting, reflect the full transcripts, which are released on a five year lag?... Read More
Central Banks
What Will the Fed Do?
What Will the Fed Do?
Posted By Jim Bianco
The decline in the market has put the Fed back in play this spring.... Read More
Central Banks
Two Takeaways From Powell’s Testimony
Two Takeaways From Powell’s Testimony
Posted By Jim Bianco
Day one of Powell's testimony offered two takeaways. First, the Phillips Curve is dead. Second, the Fed intends to support the repo market until at least April.... Read More
Central Banks
The Market Is Pricing in 2020 Cuts
The Market Is Pricing in 2020 Cuts
Posted By Jim Bianco
Market measures are pricing in a Fed rate cut in 2020. Fears of supply chain disruption are driving this idea.... Read More
Central Banks
All About the FOMC
All About the FOMC
Posted By Jim Bianco
The Fed made no major policy announcements, but Powell's comment about a floor on excess reserves was noteworthy.... Read More
Central Banks
Another IOER Tweak Coming?
Another IOER Tweak Coming?
Posted By Jim Bianco
The Fed is poised to hike Interest on Excess Reserves (IOER) by five basis points today in an attempt to keep the effective funds rate near the mid-point of its targeted range between 1.50% and 1.75%.... Read More
Central Banks
Central Banks Are the Biggest Risk to the Economy in 2020
Central Banks Are the Biggest Risk to the Economy in 2020
Posted By Jim Bianco
The Fed?s reaction to the disruption in repo markets shows how hard it will be for policymakers to reverse their ?money printing.?... Read More
Central Banks
The Fed: Everyone Has a Plan Until They Are Punched in the Mouth
The Fed: Everyone Has a Plan Until They Are Punched in the Mouth
Posted By Jim Bianco
Jim was on CNBC's Trading Nation yesterday talking about the outlook for the Fed going into 2020. The Fed has a plan to keep rates steady for the foreseeable future, but as Jim quipped, "everyone has a plan until they get punched in the mouth." He believes a 5% to 7% correction in stocks in 2020 could force the Fed to revisit talks of rate cuts.... Read More
Central Banks
All About Lagarde
All About Lagarde
Posted By Jim Bianco
Using a central bank as a blunt instrument to force government spending is not a good idea.... Read More
Central Banks
Fed Support for the Repo Market Continues to Increase
Fed Support for the Repo Market Continues to Increase
Posted By Jim Bianco
The Fed has spent $273 billion trying to calm the repo market.... Read More
Central Banks
A New Funds Rate Ceiling?
A New Funds Rate Ceiling?
Posted By Jim Bianco
Powell's inflation comments put a ceiling on the funds rate. Also, the FOMC statements continue to get shorter and easier to understand. According to the Flesch-Kincaid grade-level test, readers don't even need a high school diploma to understand yesterday's statement.... Read More
Central Banks
Why Market-Based Probabilities of a Cut Are Distorted
Why Market-Based Probabilities of a Cut Are Distorted
Posted By Jim Bianco
The consensus forming in the market is the Fed will cut tomorrow and signal they are done. While this seems a likely scenario, it is worth noting the market's true odds of further cuts are likely understated due to the liquidity problems in the repo market.... Read More