Tag Archives: Federal Reserve

Year-end rate hike once again proves to be launchpad for gold price – FOMC follows through on much anticipated rate-hike of 0.25%– Spot gold responds by heading for biggest gain in three weeks, rising by over 1%– Final meeting for Federal Reserve Chair Janet Yellen– Yellen does not expect Trump’s tax-cut package to result in significant, strong growth for US economy– No concern for bitcoin which ‘plays a very small...

Authored by Christoph Gisiger via Finanz und Wirtschaft, James Grant, Wall Street expert and editor of the renowned investment newsletter «Grant’s Interest Rate Observer», warns of the unseen consequences of super low interest rate and questions the extraordinary actions of the Swiss National Bank. Nearly ten years after the financial crisis, extraordinary monetary policy has become the norm.   The financial markets seem to like it: Stocks are close to record levels and...

No fewer than thirteen central banks meet in the week ahead.  The UK and the US report the latest inflation figures, and the US and eurozone report industrial production. The eurozone sees the flash PMI for December, and the Japan’s latest Tankan business survey will be released. Most of the central banks that meet will not be changing policy.  Of the major central banks, the Bank of England, which hiked rates last...

There are a number of events and economic reports in the week ahead that will help shape the investment climate in the weeks and months ahead. In recognition of the importance of initial conditions, let’s briefly summarize the performance of the dollar and main asset markets. After recovering from a five-month decline in September and October, the dollar has lost ground against all the major currencies here in November,...

It looks like BoJ Governor, Haruhiko Kuroda’s, minions are getting out and about to brief the financial news services that the biggest stimulator of all the central banks might reduce stimulus earlier than expected. The recipient of the unofficial briefings by BoJ officials is Reuters, which has this to say. The Bank of Japan is dropping subtle, yet intentional, hints that it could edge away from crisis-mode stimulus earlier than expected, through a future hike in its yield target,...

Swiss Franc The Euro has fallen by 0.32% to 1.1599 CHF. EUR/CHF and USD/CHF, November 22(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Global equities are on the march. US indices shrugged off their first back-to-back weekly decline in three months to set new record highs yesterday. The MSCI Asia-Pacific followed suit and recorded their highest close. The Dow Jones...

Authored by John Mauldin via MauldinEconomics.com, “Vanity of vanities, saith the Preacher, vanity of vanities; all is vanity.” – Ecclesiastes 1:2, King James Version (attributed to King Solomon in his old age) This week’s letter will take a look at the growing number of ridiculous, inane, and otherwise nonsensical absurdities that fill the daily economic headlines. I have gone from the occasional smile to scratching my...

Authored by John Mauldin via MauldinEconomics.com, “Vanity of vanities, saith the Preacher, vanity of vanities; all is vanity.” – Ecclesiastes 1:2, King James Version (attributed to King Solomon in his old age) This week’s letter will take a look at the growing number of ridiculous, inane, and otherwise nonsensical absurdities that fill the daily economic headlines. I have gone from the occasional smile to scratching my...

The contours of the investment climate are unlikely to change based on next week’s economic data from the US, Japan, or Europe. The state of the major economies continues to be well understood by investors. Growth in the US, EU, and Japan remains solid, and if anything above trend, as the year winds down. The incremental data will likely show that the eurozone economic momentum is intact with the November flash PMI....

On the vital matter of missing symmetry, consumer price indices across the world keep suggesting there remains none. Recoveries were called “V” shaped for a reason. Any economy knocked down would be as intense in getting back up, normal cyclical forces creating momentum for that to (only) happen. In the context of the past three years, symmetry is still nowhere to be found. It’s confounding even central bankers who up...