[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Ben_Bernanke.jpg”] Following Bernanke’s testimony in front of the Senate yesterday, Goldman’s Andrew Tilson lays out the options for the Fed’s next move, and what’s most likely to happen.First, he notes that there are four realistic possibilities on the table for more easing.
The euro has been falling sharply since Federal Reserve Chairman Ben Bernanke began testifying to the Senate Banking Committee at 10 AM ET.
[credit provider=”en.wikipedia.org” url=”http://en.wikipedia.org/wiki/File:Edwin_Booth_Hamlet_1870.jpg”] When TMM gathered this morning around the vast cherry wood conference table in the echoing caverns hewn from granite in the TMM-cave, the messages our ambassadors brought from the four corners of the earth were all stories of a strange new theme.European corps buying EUR/USD – cant […]
[credit provider=”Geishaboy500 via Flickr” url=”http://www.flickr.com/photos/geishaboy500/4340597257/”] The Daily Reckoning…proved right again!We’ve been sticking our necks out. We had a strong hunch that the rich had gotten a whole lot richer not because they were suddenly greedier or suddenly smarter, but because of the feds. The feds were handing out money. The […]
Via SocGen, here is how stocks, bonds, and three major currency pairs have traded on the days that Federal Reserve chairman Ben Bernanke has delivered his semi-annual testimony to Congress, going back to 2007:
Gage Skidmore via Flikr
On Friday afternoon, one of the undecided FOMC members, Atlanta Fed President Dennis Lockhart appeared to move closer to voting for QE3 now. Back in June, Lockhart said he viewed the current “policy stance as appropriate”. But, based on incoming data, his views are changing. From Lockhart on Friday: The […]
The Federal Reserve Bank of NY just released a slew of documents about the LIBOR scandal, both from the Fed and Barclays.
Vincent Reinhart, Morgan Stanley’s Chief U.S. economist live-tweeted the release of the Federal Open Market Committee (FOMC) meeting minutes from the @MorganStanley twitter handle.
[credit provider=”Win McNamee / Getty Images”] UPDATE: A few FOMC members said that more stimulus would probably be needed at their last committee meeting.Several members also said that the Fed should study new policy easing tools.
This is a stunning thing we’ve never seen before.
[credit provider=”Wikimedia Commons” url=”http://en.wikipedia.org/wiki/File:Marriner_S._Eccles_Federal_Reserve_Board_Building.jpg”] We wrote yesterday about a paper published by former Federal Reserve analyst Jeremy Berkowitz in 1998 which suggested that the Fed had considered the possibility that LIBOR could be manipulated some 10 years before the financial crisis.In a phone interview yesterday, Berkowitz argued that many of […]
[credit provider=”en.wikipedia.org” url=”http://en.wikipedia.org/wiki/File:Marriner_S._Eccles_Federal_Reserve_Board_Building.jpg”] The scandal over the London Interbank Offered Rate (LIBOR) —one of the most important benchmarks for interbank lending—has been heating up, as governments investigate apparent collusion to manipulate base lending rates by some of the world’s most prominent banks.The British Bankers’ Association calculates the LIBOR rate by […]
[credit provider=”CNBC”] From the latest note from Goldman’s Jan Hatzius…The real issue, in our view, is that neither Twist 2 nor QE3 is likely to be very potent unless it is coupled with “unconventional unconventional” policies. Using our GS Financial Conditions Index, we showed recently that a program of a […]
[credit provider=”Jonathan Ernst / Getty Images” url=”http://www.gettyimages.com/detail/news-photo/federal-reserve-chairman-ben-bernanke-testifies-during-a-news-photo/109713126″] Despite the immediately negative reaction to today’s announcement of non-farm payrolls, analysts are sceptical that number is bad enough to lead to another round of quantitative easing.General consensus from economists seems to be that the jobs number would have had to be really […]
In an interview with Bloomberg TV, economist Joseph Stiglitz stated that the Fed obviously mismanaged the economy before 2008 and that the outlook for America to return to full employment in the next few years looks very bleak.
[credit provider=”Morgan Stanley” url=”http://linkback.morganstanley.com/web/sendlink/webapp/BMServlet?file=9dmoqcne-3obu-g001-a8f0-0025b3a40300&store=0&d=1&user=barcbrzei5hx-1&__gda__=1459683812_775590e8fb7b5a34ed0a015aaea25eb3#0041&barcbrzei5hx-4&1459683812_b71b3f7a988b766fe17ea5732fb92a06&0031&”] In his latest US Macro Dashboard note, Morgan Stanley chief economist goes back tot he Fed, and explains why the Fed hasn’t done more.He only sees one explanation…
[credit provider=”Federal Reserve Bank of Philadelphia” url=”http://philadelphiafed.org/research-and-data/regional-economy/indexes/leading/charts/2012/LeadingIndexes0512.jpg”] After months of strong economic activity around the country, the most recent release of state coincident indexes from the Federal Reserve Bank of New York indicates that economic activity may be slowing once more across the country.The coincident indexes take into account unemployment, employment, manufacturing […]
[credit provider=”AP”] After more than three decades of tilting at windmills, Ron Paul is finally gaining support for his beloved Audit The Fed bill. The bill, H.R. 459, passed the House Oversight Committee this morning on a voice vote, with no vocal opposition. House Republican leaders have said that they plan […]
[credit provider=”Flickr / wwward0″ url=”http://www.flickr.com/photos/wwward0/6549256939/sizes/m/in/photostream/”] Morgan Stanley’s economists were disappointed when the Federal Reserve announced what it’s next round of stimulus would look like. Vincent Reinhart, Chief U.S. Economist, saw an 80 per cent chance of Fed balance sheet expansion in the form of quantitative easing (QE3). But instead, we got […]
[credit provider=”Morgan Stanley” url=”http://linkback.morganstanley.com/web/sendlink/webapp/BMServlet?file=9dmoqcne-3obu-g001-a8f0-0025b3a40300&store=0&d=1&user=barcbrzei5hx-1&__gda__=1459683812_775590e8fb7b5a34ed0a015aaea25eb3#0041&barcbrzei5hx-4&1459683812_b71b3f7a988b766fe17ea5732fb92a06&0031&”] Here are the facts: The Fed is failing to meet both of its mandates. Unemployment is still well above where it should be (according to the Fed’s own forecasts) and inflation is trending below its goal of 2%. Bernanke says the Fed has more tools at […]
Futures were solidly positive a few minutes ago.
Today’s significant market decline most likely marks the end of the oversold bounce from the June 4th lows. The rally was based on little more than the hope of central bank rescues around the world in the face of what has now become a widely recognised global slowdown that threatens the onset […]
[credit provider=”Bloomberg”] The Fed is standing in its own way and is not taking meaningful enough steps to boost the economy, Bill Fleckenstein tells King World News in an interview. “Bernanke has taken a half-step towards doing something aggressive,” he said. “The reality is the Fed’s optimism is misplaced because the Fed […]
As expected, the Fed announced more easing at the conclusion of yesterday’s FOMC meeting. It came in the form of more Operation Twist, which aims to lower long-term interest rates by selling short-term bonds and buying long-term bonds. However, the Fed may have disappointed some market participants who were hoping […]
The fiasco that is playing out in the natural gas industry doesn’t happen often in a free market, and when it does happen, it’s usually short—and brutal: namely, prices that are way below production costs.
Goldman’s Jan Hatzius has some more in-depth thoughts relating to yesterday’s Fed decision to extend Operation Twist, but not (yet) do full-blown QE3.
Mohamed El-Erian, CEO of PIMCO, the world’s biggest bond fund, just published his instant reaction to the Fed’s policy announcement in the Financial Times.
Here’s a intraday chart of the rate on 30-year US government Treasuries.
Some great tweets from economist Justin Wolfers on the Fed announcement…
[credit provider=”(Photo by Spencer Platt/Getty Images) “] The Federal Reserve monetary policy announcement is out.Rather than go on with full on QE3 (more bond buying), the Federal Reserve is extending what’s known as “Operation Twist” which means that the Fed will buy long dated Treasuries and finance that with sales […]
[credit provider=”Wikimedia Commons” url=”http://en.wikipedia.org/wiki/File:FF232.jpg”] SocGen’s house view as explained by its economist Michala Marcussen is that the Federal Reserve will announce $600bn of new asset purchases today at the FOMC meeting, split 40 per cent to 60 per cent between mortgage-backed securities (MBS) and US Treasuries.SocGen’s rates strategy team assigns […]
[credit provider=”Jonathan Ernst / Getty Images” url=”http://www.gettyimages.com/detail/news-photo/federal-reserve-chairman-ben-bernanke-testifies-during-a-news-photo/109713126″] In just a few hours, the Federal Reserve led by Chairman Ben Bernanke will conclude its Federal Open Market Committee meeting and publish is decision on monetary policy.The sentiment on Wall Street seems to be biased toward a major announcement of additional stimulus […]
UBS floor guy Art Cashin has a great preview of today’s Fed announcement.
The FOMC announcement for the June 19-20 FOMC policy meeting will be released later today.
[credit provider=”Chip Somodevilla / Getty Images” url=”http://www.gettyimages.com/detail/news-photo/demonstrator-holds-up-a-sign-behind-u-s-treasury-secretary-news-photo/82971232″] UBS senior economist Drew Matus was on Bloomberg TV this morning previewing Wednesday’s FOMC meeting. Many of the major investment banks are expecting the announcement of significant policy action, while UBS is not.However, Matus said if the Fed does decide to announce additional […]
[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Federal_Open_Market_Committee_Meeting.jpg”] Goldman Sachs, Morgan Stanley, and JP Morgan are among the big names expecting a new Fed-led monetary easing program this Wednesday.BofA Merrill Lynch economists Michael Hanson and Ethan Harris have their doubts. From a new note to clients:
[credit provider=”Bloomberg” url=”http://www.bloomberg.com/video/91398870-jpmorgan-s-feroli-on-fed-monetary-policy.html”] The Federal Open Market Committee (FOMC) meets this week, and top Fed watchers are banking on more easing. They include Goldman Sachs’ Jan Hatzius, Morgan Stanley’s Vincent Reinhart, Bank of America’s Michelle Meyer, and SocGen’s Micala Marcussen. Bank of America’s Michelle Meyer sees QE coming, but not […]
The big story last week — other than the stock market sucker-punching the bears — was the steepening yield curve, which, well, isn’t supposed to be happening. Quantitative easing is supposed to be doing the precise opposite.
[credit provider=”Bloomberg TV”] A third round of quantitative easing is coming this Wednesday, top Société Générale economist Michala Marcussen says.Marcussen writes that if anything, the boost will help “only at the margins.”
[preserve] [/preserve] Congressman Ron Paul doesn’t think we’re going to get real reform at the Fed until there’s a crisis that forces change in U.S. monetary policy.
[credit provider=”Bloomberg via YouTube” url=”http://www.youtube.com/watch?v=63phQ0A8Kt0″] Barry Knapp thinks the Fed is out of ammo in an environment of lackluster economic growth and sees the S&P 500 sinking to 1200 sometime this summer.Knapp, the head of U.S. equity strategy at Barclays, was a guest on Bloomberg TV this afternoon.
[credit provider=”Getty”] This week U.S. Senator Bernard Sanders (I-Vt.) and the Government Accountability Office (GAO) released a pithy report titled “Jamie Dimon Is Not Alone” that states:”During the financial crisis, at least 18 former and current directors from Federal Reserve Banks worked in banks and corporations that collectively received over […]
[credit provider=”Bloomberg TV”] When investors aren’t worrying about Europe, they’re betting on the prospect of a new round of quantitative easing from the Federal Reserve.Particularly soft CPI and employment data this morning brought back the on again off again debate over whether the Fed could initiate a new round of […]
[credit provider=”Marines/Vanessa Jimenez” url=”http://www.marines.mil/Pages/PhotoDetails.aspx?ItemUrl=http://www.marines.mil/unit/hqmc/PublishingImages/2011/111021-M-LS108-391.jpg#.T8f23plYvw1″] UPDATE (1:18 PM ET): The Dow is up about 120 points or 1 per cent on a quiet day for news.The S&P 500 and the NASDAQ are also rallying.
[credit provider=”Federal Reserve” url=”http://federalreserve.gov/pubs/bulletin/2012/PDF/scf12.pdf”] Earlier this week, the Federal Reserve released its Survey of Consumer Finances (SCF), which indicated that household net worth plummeted from 2007 to 2010. Specifically, the median value of real (inflation-adjusted) family income before taxes fell nearly 40 per cent to $77,300, while the mean fell more […]
Markets tanked and then immediately reversed losses in a dramatic reversal following a poor initial jobless claims number and a CPI reading that suggested the economy could be slowing at a greater rate than expected.
[credit provider=”Koichi Kamoshida/Getty Images”] Today’s economic data came in soft even by analyst expectations, with CPI falling to 1.7 per cent year-over-year in May and initial jobless claims rising to 386K.While the Federal Reserve won’t strictly be held to this data, it has previously said that it would consider using […]
[credit provider=”Fox Business News”] Richmond Federal Reserve Governor Jeffrey Lacker and former Minneapolis Fed Governor Gary Stern are serving some intellectual breakfast this morning in advance of today’s testimony from Jamie Dimon, providing an updated take on too-big-to-fail. Writing in the Wall Street Journal, the pair make the case that “living […]
[credit provider=”Getty Images”] Since the lousy jobs report, there has been a veritable orgy of Fed Speak with juicy morsels and contradictions, interspersed with leaks and rumours, that climaxed with Chairman Ben Bernanke’s words of wisdom before the Congressional Joint Economic Committee.It whipped markets into a frenzy, drove the Dow […]
[credit provider=”oddomar via flickr” url=”http://www.flickr.com/photos/[email protected]
/4207463099/”] Citigroup will refile its capital plans under Federal Reserve black-sky scenarios this Monday, after failing the capital stress tests earlier this year.Click here for updates >
Bank of America’s Rates and Currencies Research team has a note out this morning taking a look at Fed policy.
[credit provider=”en.wikipedia.org” url=”http://en.wikipedia.org/wiki/File:Dialysis_-_arm_-_01.jpg”] The stock market continues to be on life-support, depending on the actions of the Fed and other central banks to arouse it from its lethargy. While Bernanke’s statement and testimony before Congress was somewhat disappointing to those hoping fervently for a hint that QE3 was just around the […]
[credit provider=”Federal Reserve” url=”http://federalreserve.gov/newsevents/speech/yellen20120606a.htm”] Janet Yellen, vice chairmen of the Fed, gave a presentation at the Boston Economic Club this evening, with many interpreting it as a ringing endorsement for greater monetary easing.”Prolonged weakness in the housing sector remains one of several serious headwinds facing the U.S. economy,” Yellen said. […]
Fed Governor Janet Yellen gave a speech tonight, and it’s widely interpreted as being pretty dovish.
Three Federal Reserve members now back greater fiscal stimulus if the economy continues to sour.
The yellow metal is up almost $100 since last Friday’s weak U.S. employment report. Gold is a weird cat with multiple personalities and more than nine lives.
[credit provider=”Lisa Du, Business Insider with AP”] You can thank Jon Hilsenrath, the chief economics correspondent for The Wall Street Journal, for today’s stock market surge. The Dow is up more than 200 points after Hilsenrath broke the news last night that the Federal Reserve is now considering more action including another round […]
Just out: The Fed Beige Book.
[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Ben_Bernanke_official_portrait.jpg”] The buzz these days is that the Fed is probably going to launch another round of “quantitative easing” stimulus, QE3, thanks to weakness in the economy and markets.But there’s always a chance that Bernanke and crew could get gun shy.
The WSJ’s Jon Hilsenrath — whom Cardiff Garcia has dubbed “Fedwire” — reports that more Fed action is now officially on the table due to the slew of weak incoming data.
As we noted last week, analysts have been tittering over a new potential policy response to risks associated with a global slowdown—most particularly the crisis in Europe.
[credit provider=”Morgan Stanley” url=”http://linkback.morganstanley.com/web/sendlink/webapp/BMServlet?file=9dmoqcne-3obu-g001-a8f0-0025b3a40300&store=0&d=1&user=barcbrzei5hx-1&__gda__=1459683812_775590e8fb7b5a34ed0a015aaea25eb3#0041&barcbrzei5hx-4&1459683812_b71b3f7a988b766fe17ea5732fb92a06&0031&”] Morgan Stanley top economist Vincent Reinhart and the head of U.S. interest rate strategy Matthew Hornbach say there is now more than a 50 per cent chance the Federal Reserve will use its balance sheet to bolster economic growth.In a video interview for clients, the pair put the […]
[credit provider=”AP”] Joseph Stiglitz says action from the Federal Reserve, including future quantitative easing, will not solve the slow growth recovery plaguing job growth.”Monetary policy is not enough. It should not get our false hopes up that monetary policy is going to solve our problems,” the Nobel Prize winner and […]
[credit provider=”Wikimedia COmmons” url=”http://commons.wikimedia.org/wiki/File:US_M113_ACAV_Vietnam.jpg”] Jefferies chief market strategist David Zervos is calling for panic in a note out this morning, starting off his analysis with the scary pronouncement: “We are back in the kill zone—Apocalypse Europe.”Essentially, contagion from the European crisis is once again banging on the door of the […]
[credit provider=”KRO-Media via Flickr”] Greece is now in a two-week polling blackout.And we just got digested an insane volume of economic data this past week, which means we’re going to head into something of a data lull.
In a note called ‘Crunch Time’, Goldman’s Jan Haztius lays out the case for QE to be announced at the next meeting:
[credit provider=”Caza_No_7″ url=”http://www.flickr.com/photos/iancarroll/3476935563/”] Finance experts have long estimated that America’s student loan debt has swelled past $1 trillion, but a new report offers startling insight into exactly what consumers are up against. Since 2003, student loan debt has nearly tripled from $293 billion to a whopping $904 billion, according to the […]
[credit provider=”Youtube”] Since the Federal Reserve gave more than 4 million homeowners the chance to fight their foreclosures last year, the process put in place to review them hasn’t gone as smoothly as planned. The Independent Foreclosure Review came in the wake of the 2008 robosigning scandal, with 14 big lenders agreeing to […]
[credit provider=”(Photo by Spencer Platt/Getty Images) “] If you’ve ever been involved in a legal contention, like a business or personal dispute or a contested divorce, you know that the whole game pivots, ultimately, on the potential end game: what would happen if the thing went to court — even […]
[credit provider=”a.dombrowski via Flickr” url=”http://www.flickr.com/photos/adombrowski/5914098233/sizes/l/in/photostream/”] The fiscal cliff is fast approaching and if Congress fails to act, more than $600 billion in tax and spending provisions are set to change at the end of the year.The Congressional Budget Office (CBO) recently revised its projections and now sees 2013 growth of […]
[credit provider=”AP Photo”] As the trading debacle at JP Morgan continues to tarnish CEO Jamie Dimon’s reputation, a number of officials have not-so-subtlety hinted that his role at the New York Federal Reserve should come to an end.They can add one more name to their list: Federal Reserve Bank of Kansas […]
[credit provider=”The White House”] If one myth has been slain by the financial crisis and the response to it, it’s the idea that central banks ought to be independent and unaccountable politically. The idea of central bank independence was that it would guarantee good monetary policy. During the Great Moderation it […]
[credit provider=”Federal Reserve Bank of Philadelphia” url=”http://www.philadelphiafed.org/research-and-data/regional-economy/indexes/coincident/maps/2012/2012-04.jpg”] What started with a whimper now seems to be a strong trend.According to the most recent release of state coincident indexes from the Federal Reserve Bank of New York, 48 out of 50 states saw increasing economic activity.
[credit provider=”Flickr / x-ray delta one ” url=”http://www.flickr.com/photos/x-ray_delta_one/4175963774/sizes/m/in/photostream/”] Stay-at-home spouses are having a tough time applying for credit thanks to a quirky clause in Obama’s CARD Act, but they shouldn’t lose hope just yet. The Consumer Financial Protection Bureau is hard at work reviewing a Change.org petition against the law created by […]
[credit provider=”en.wikipedia.org” url=”http://en.wikipedia.org/wiki/File:Marriner_S._Eccles_Federal_Reserve_Board_Building.jpg”] UPDATE: Investors predicting another round of quantitative easing are breathing a sigh of relief right now.The most recent minutes of the Federal Open Committee Meeting revealed that several members think more easing could be in the cards if the recovery falters.
[credit provider=”DonkeyHotey via flickr” url=”http://www.flickr.com/photos/donkeyhotey/6269797026/in/photostream/”] With Europe dominating headlines, investors appear to be giving little thought to what could be either the biggest surprise or the biggest snooze of the day: the release of minutes from the April meeting of the Federal Open Market Committee of the Federal Reserve.At its […]
[credit provider=”Fox Business News” url=”http://video.foxbusiness.com/v/1458759945001/are-fed-policies-hurting-the-middle-class/”] Everyone’s still trying to figure out exactly how JP Morgan lost $2 billion in a hedge/trade gone wrong.To a lesser extent, people are asking why.
NYTimes.com Deal Book’s Mark Scott writes today regulators have actually been looking into JPMorgan’s “London Whale” trades for at least a month, citing people with direct knowledge of the inquiry.
Going again the popular theory that devious insiders caused the housing crisis, economists at the Federal Reserve Banks of Boston and Atlanta argue that “borrowers and investors made decisions that were rational and logical given their ex post overly optimistic beliefs about house prices”
[credit provider=”Mark Wilson/Getty Images”] Every day, rivers of green currency sheets flow through the presses at the Bureau of Engraving and Printing, the federal agency responsible for printing all of the country’s paper money. The technology used to produce today’s legal tender is a far cry from the steam-powered machines used […]
Rupert Murdoch is taking a break from his busy life as the CEO of News Corp., to host a Twitter debate about Ron Paul.
[credit provider=”Courtesy of CSPAN”] Texas Congressman Ron Paul will once again face off against his central bank nemesis this morning, during a Congressional hearing on monetary policy and the Federal Reserve. The hyped-up hearing is titled “The Federal Reserve System: Mend It Or End It?,” and will be hosted by the […]
A friend sends me the following chart to support his conclusion that another round of QE is coming from the Fed sometime in June.
[credit provider=”AP”] You just have to admire Ron Paul for his tenacity and non-flip-flopping straightforwardness—a breath of fresh air in the putrid morass of Washington—even if you disagree with his policies. And while he still can, before retiring from Congress, he is slugging at the Fed again.This time, as Chairman […]
[credit provider=”Courtesy Sotheby’s”] Last week, Edvard Munch’s The Scream sold for a record $119.9 million at a Sotheby’s auction.Jim Grant, editor of the Grant Interest Rate Observer was on Bloomberg TV saying:
[credit provider=”centre of American Progress”] Fed chairman Ben Bernanke has said the Fed underestimated the size of the Great Recession because it neglected that the housing bust was concentrated on a very leveraged financial sector, unlike the dot com bust which had a wider fallout.In his latest piece in Bloomberg […]
David Einhorn’s calls are the stuff of modern day hedge fund legend (think: Lehman Brothers collapse, Green Mountain Coffee), and he’s definitely asserted himself as one of the industry’s hot shots.
[credit provider=”US Navy” url=”http://www.navy.mil/view_single.asp?id=11268″] Goldman Sachs is arguing against a proposed Fed Rule by picking on probably the most sensitive topic in the American economy today: jobs.The rule in question is a requirement that banks limit single counterparty exposures to 25% of their regulatory capital, and is being mandated as […]
[credit provider=”Courtesy of Fox Broadcasting Company”] With brilliant calls on Green Mountain Coffee and Herbal Life, David Einhorn is on FIRE right now.And when you’re hot, people listen to what you have to say. We suppose that’s why he chose this moment to pen a column in the Huffington Post […]
[credit provider=”Screenshot from CNBC”] Hedge fund super star David Einhorn isn’t known for penning columns or making TV appearances, so his column in the Huffington Post today is a special treat — kind of like th jelly doughnuts he writes about.Einhorn’s column, ‘The Fed’s Jelly doughnut Policy’ is a break […]
[credit provider=”Flickr / hto2008″ url=”http://www.flickr.com/photos/[email protected]
/2559014732/sizes/m/in/photostream/”] There are times, my friends Michael Lewitt and Dr. Lacy Hunt agreed today at lunch, when the study of economics is best informed by a sound knowledge of history.Indeed, Michael’s son wants to follow his father into the finance world, and Michael is starting him […]
The most highly anticipated segment of the Federal Reserve’s big policy day on Wednesday ended up being the release of Fed members’ future policy projections.
Jim Grant, editor of Grant’s Interest Rate Observer, has long been critical of the Fed and Fed chairman Ben Bernanke.
[credit provider=”Bloomberg TV”] Yesterday proved a huge day for talk of Treasurys, with 3 announcements from the Federal Reserve and investor commotion over whether or not the U.S. will see another round of quantitative easing in the next few months.But despite the hype and indications that FOMC committee members see […]
The market did not seem to respond much to the FOMC statement or the revised forecasts. It has responded to Bernanke’s answer to a question about QE. Bernanke said that the Fed is prepared to do more with its balance sheet. The dollar was sold, stocks and bonds firmed.
[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Rat_noir.jpg”] Bill Fleckenstein, does not have much faith in the people in charge of the Fed. He went as far as to call them “idiots who never saw anything coming.” Fleckenstein had some choice words for Bernanke and the rest of the Fed this afternoon.From King World […]
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