Tag Archives: Central Banks

Central Banks

Previewing Today’s FOMC Meeting – Dot Plots & Balance Sheets
Posted By Jim Bianco  |  Featured, Newsclips

The Fed meets today and is expected to keep rates unchanged. The markets will be more interested in the latest release of the Summary of Economic Projections and are hoping for answers on when balance sheet reductions will come to an end.... Read More

Central Banks

All Central Bank Stimulus Is Fungible
Posted By Jim Bianco  |  Featured, Newsclips

Once all central banks synchronize and start reducing their balance sheets, dramatically higher interest rates might be a possibility. Currently, this is not close to happening.... Read More

Central Banks

The Fed and Markets – STILL Not on the Same Page
Posted By Jim Bianco  |  Featured, Newsclips

The markets and economists have vastly different views on the balance sheet and the path for rate hikes. This is a problem.... Read More

Central Banks

Instead of Herman Cain, How About Harold Hamm to the Fed?
Posted By Jim Bianco  |  Featured, Newsclips

Since crude oil is such an integral part of inflation expectations and Fed policy, maybe Trump should consider Continental Resources Chairman Harold Hamm for a Fed Governor seat.... Read More

Central Banks

Is the Fed Done?
Posted By Jim Bianco  |  Featured, Newsclips

The Fed gave the market what it wanted by suggesting the rate hike cycle is over and that they are open to adjusting the balance sheet's reductions.... Read More

Central Banks

FOMC Outlook: Will “Flexible” and “Patient” Be Added to the FOMC Statement?
Posted By Jim Bianco  |  Featured, Newsclips

Will the Fed formally use the words Powell carefully read on January 4 ... "flexible and patience?" If so, this could account for "half a move." No hike at the next meeting unless they drop these words. It's inclusion also means the Fed still wants to hike, just quibbling about the timing.... Read More

Central Banks

The Fed Is Dropping Clues About the Balance Sheet
Posted By Jim Bianco  |  Featured, Newsclips

The Fed and the markets have held different views on the importance of balance sheet reductions. A recent Wall Street Journal story suggests Powell is ready to discuss the matter in a more public manner to get a better feel for where the markets stand on the issue.... Read More

Central Banks

Why Economists Cannot Predict Recessions
Posted By Jim Bianco  |  Featured, Newsclips

Economic data often gives very little evidence of impending recessions, leading to a poor forecasting record among economists.... Read More

Central Banks

Is the Fed’s Balance Sheet Driving Funding Costs Higher?
Posted By Jim Bianco  |  Featured, Newsclips

The Fed wanted the balance sheet to be on automatic pilot because they thought it had little impact on monetary policy.  The market thought otherwise and the funding markets rates might be showing how.... Read More

Central Banks

What Powell Needs to Address Tomorrow
Posted By Jim Bianco  |  Featured, Newsclips

We believe the stock market?s rally since Wednesday can be attributed in large part to a belief that the Fed is done hiking. Tomorrow, Powell will be the first Fed official to speak since December 21. If he pushes back on this notion in any way, it will not sit well with the stock market.... Read More

Central Banks

A Note to the Fed – Please Explain “Automatic Pilot”
Posted By Jim Bianco  |  Featured, Newsclips

Considering nobody knows exactly how the economy and markets will react to reductions in the Fed's balance sheet, terms like "automatic pilot" should be removed from the Fed's lexicon. The markets fear that QT, combined with the Fed's projections for two more rate hikes in 2019, could prove to be too much for the economy to handle.... Read More

Central Banks

Powell Missteps on Balance Sheet Reductions
Posted By Jim Bianco  |  Featured, Newsclips

Yesterday the markets reacted strongly to Powell's comments on the balance sheet.... Read More