18 January 2022 In December, the US Federal Reserve abandoned its belief that rising inflation was "transitory", and signaled that monetary tightening may commence earlier that expected. In their defense, the extreme imbalances in aggregate supply and demand in both labour and goods markets (e.g. supply chain disruptions) during the 2020/21 economic recovery have complicated … Continue reading Fed to Tighten Till Markets Pushback
7 March 2021 We have all marvelled at the dramatic expansion of the US Federal Reserve's balance sheet following both the Global Financial Crisis (GFC) and the Covid pandemic. And, the Chart illustrates quantitative easing (QE) policies have had a similar impact on the asset holdings of central banks worldwide (thanks to Yardeni Research for … Continue reading Global Money: Will Boom Go Bust?
6 August 2019 The US Federal Reserve's recent decision to reduce interest rates a stingy 25bp, and to deliver a less-dovish-than-expected statement raises more questions than it answered. Was the rate cut a one-time adjustment to provide insurance against the prospect of weaker growth ahead? Did Chairman Jerome Powell react to White House pressure? If … Continue reading Currency Wars Ahead?
21 March 2019 At its March meeting, the US Federal Reserve signaled it would keep interest rates unchanged in 2019. In a similar fashion, the European Central Bank (ECB) at its recent gathering signaled interest rate hikes will be delayed until next year, and additional monetary support was forthcoming. But, that's not the end of … Continue reading Global Central Banks: Taking 2019 Off!