Tag: Monetary Policy

Behind bond market’s muted response to Federal Reserve’s rate outlook may be a message for policy makers

Underneath the bond market’s relatively muted response to the Federal Reserve’s revised rate outlook on Wednesday is an expectation from traders that the central bank won’t get as far as it thinks it can on raising benchmark policy rates. While stocks were broadly higher and Treasury yields were mixed on what some investors perceived to […]

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Fed’s Kaplan expects to support a taper-plan announcement later this month

Dallas Fed President Robert Kaplan said Wednesday he expects to advocate that the Fed announce a plan to slow down its $120 billion per month of asset purchases “sooner rather than later,” despite the disappointing August jobs report. Kaplan, who has been a leading advocate for the tapering, said he wasn’t surprised by the August […]

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The ECB is set to start reducing bond purchases before the Fed. Just don’t call it ‘tapering.’

You probably could’ve won a nice bet if you had wagered the European Central Bank would start reducing its asset purchases before the Federal Reserve would. The economic data doesn’t really lend itself to the notion the ECB needs to start reducing stimulus before the Fed. U.S. inflation was 6.3% year-over-year in July, compared to […]

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‘Stagflation’ is the greatest threat to Europe’s recovery, warns ex-Italian PM Monti

Former Italian Prime Minister Mario Monti told CNBC Saturday that he believes the greatest threat to Europe’s economic recovery from the coronavirus pandemic is “stagflation.” Monti, now the president of Italy’s Bocconi University, said the “huge mass” of accommodative monetary policy by central banks and fiscal stimulus from governments, implemented to support economies amid the […]

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Former Fed official warns of ‘urgent’ threat of another financial crisis

Investors cheered Federal Reserve Chairman Jerome Powell’s Jackson Hole speech on Friday, with markets interpreting it to mean that the central bank would not too quickly wind down its support of the economy. But not every speaker at the annual gathering gave cause for optimism. Don Kohn, the Fed’s former vice chair for financial supervision, […]

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Fed chair Powell says he supports starting to taper bond purchases this year

Federal Reserve Chairman Jerome Powell revealed on Friday that he was one of the majority of Fed officials who believe the central bank can “taper” or slow down the pace of its bond purchases this year. In his closely watched Jackson Hole speech, Powell said “at the FOMC’s recent July meeting, I was of the […]

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Dow and S&P 500 futures pare losses but delta jitters persist as choppy week ends

U.S. stock index futures were lower on Friday as investors weighed fears over the delta variant of coronavirus, the imminent tapering of Federal Reserve bond buying, and China’s restrictions on its economy. How are benchmarks trading? Futures on the Dow Jones Industrial Average YMU21, +0.13% YM00, +0.13% fell 48 points, or 0.1%, at 34,770. S&P […]

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As mortgage rates hover near historic lows, will Americans be able to take advantage of the savings?

Mortgage rates resisted the temptation to move upward after hitting the highest level in months a week ago. But research suggests that many households won’t manage to take advantage of the potential savings the low-rate environment represents. The 30-year fixed-rate mortgage averaged 2.86% for the week ending Aug. 19, down one basis point from the […]

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Strong jobs report is not a game changer for Fed policy, Wells Fargo suggests

The latest jobs report may not be a game changer for the Federal Reserve’s easy money policies. According to Wells Fargo Securities’ Michael Schumacher, it’s premature to assume July’s strong numbers will push the Fed meaningfully closer to tapering its monthly bond purchases. “This report was pretty strong. Not a blockbuster,” the firm’s head of […]

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