Category Archives: FED

FED, Trading, USA

#Yellen Suggests Roughly 6 Month Gap Before #Rate Increases After Bond-Buying Program Ends

Federal Reserve Chairwoman Janet Yellen on Wednesday said interest-rate increases could begin in the first half of 2015, around six months after it winds down its bond-buying program.

The Fed, in its policy statement, said the benchmark federal-funds rate will remain near zero for a “considerable time” after its signature bond-buying program ends. For the first time, Ms. Yellen attempted to define that term, saying it is “hard to define” but “probably means something on the order of around six months.”

The Fed has been reducing its bond-buying program in $10 billion increments and is on track to wind it down this year.

Write to Ben Leubsdorf at ben.leubsdorf@wsj.com

Read more: http://www.nasdaq.com/article/yellen-suggests-roughly-6-month-gap-before-rate-increases-after-bondbuying-program-ends-20140319-00933#ixzz2wRaHjIYv

Read more: http://www.nasdaq.com/article/yellen-suggests-roughly-6-month-gap-before-rate-increases-after-bondbuying-program-ends-20140319-00933#ixzz2wRa5uQ9b

Related Posts

  • Ready for Yellen Testimony ?
    77
    Here’s what to look for when Janet Yellen testifies before the House Financial Services Committee today in her first public remarks since becoming Federal Reserve chairman on Feb. 3. Yellen’s prepared remarks will be released at 8:30 a.m., and the hearing will begin at 10 a.m. Yellen plans to speak…
    Tags: yellen, will, janet, federal, reserve, fed
  • The Fed Is Not As Powerful As We Think
    75
    This past week marked the annual gathering of bankers, financial officials, and other economic experts hosted by the Kansas City Federal Reserve Bank in Jackson Hole, Wyoming. On Friday, Fed Chair Janet Yellen and European Central Bank head Mario Draghi both spoke; in a slow week for the markets, these…
    Tags: fed, yellen, reserve, federal
  • Meet the #Fed’s new intellectual powerhouse
    75
    Janet Yellen led her first monetary policy meeting as chair last week. But with Yellen’s emphasis so far on consensus and continuity, the key news from the Fed last week wasn’t anything Janet Yellen said, but what Federal Reserve Board Governor Jeremy Stein said at the International Research Forum on…
    Tags: policy, federal, reserve, yellen, janet, half, fed, ben
  • Fed Chair Janet Yellen's first testimony 11-Feb-2014
    69
    Fed Chair Janet Yellen's first testimony before Congress is the big event for markets in the week ahead, as traders sift through economic data to see if the softness that showed up in January's jobs is more about bad weather, or something more worrisome. Yellen, who took the helm at…
    Tags: fed, program, janet, will, bond-buying, $, wind, year, month, billion
  • Your Guide To Monitoring The Economy Just Like Janet Yellen
    63
    On Tuesday, Federal Reserve Chair Janet Yellen promised the House Financial Services Committee "a great deal of continuity" in monetary policy as she fills the shoes of Ben Bernanke.   However, Yellen is not Bernanke. And depending on her read on the economy, she will use her powers to influence…
    Tags: yellen, read, federal, policy, janet, will, ben, reserve, fed
FED, Trading

What Alan Greenspan Has Learned Since 2008

Not long after Alan Greenspan stepped down as Federal Reserve chairman in 2006, global financial markets began to unravel. The collapse of a few financial institutions, the near-collapse of many others, a massive bailout by multiple governments, and the worst economic downturn in three-quarters of a century ensued. Lots of people blamed Greenspan for some or all of this, and the man himself famously allowed, in a Congressional hearing in October 2008, that he had “found a flaw” in his model of how the world works.

Then, somewhat remarkably for a guy who had recently turned 80, he actually set to work trying to figure out what he’d gotten wrong. “It seems sort of silly,” he says now, “but I’ve learned more in the last three or four years than the previous ten.” In the fall he came out with a book setting out his new and improved worldview, The Map and the Territory: Risk, Human Nature, and the Future of Forecasting. But even that’s not the end of it. “I guess they shut it down in June,” he says, estimating when the book went to the printer. “I’ve come a long way since then.”

http://blogs.hbr.org/2014/01/what-alan-greenspan-has-learned-since-2008/

Related Posts

  • Four Dimensions of the FOMC Meeting
    56
    The FOMC meeting is the week's highlight even though policy outcome seems a foregone conclusion. It will continue with the tapering course that Bernanke put on the Fed on before he left. However, there are more moving parts than usual, and it is worth reviewing. Essentially, there are four elements of…
    Tags: fed, usa
  • 5 THINGS TO WATCH AT THE DECEMBER FED MEETING
    56
    The Federal Reserve holds its last policy meeting of the year on Tuesday and Wednesday, resulting in plenty of material to be scoured for clues about when interest rates will start inching up. The central bank’s policy committee releases its statement and new economic projections at 2 p.m. Wednesday, followed…
    Tags: financial, economic, reserve, fed, federal, usa
  • The US debt level of over $17.9 trillion would take more than 398 million years to pay off.
    56
    October 22, 2014 Santiago, Chile The US government’s debt is getting close to reaching another round number—$18 trillion. It currently stands at more than $17.9 trillion. But what does that really mean? It’s such an abstract number that it’s hard to imagine it. Can you genuinely understand it beyond just…
    Tags: debt, people, years, usa
  • What is debt-ceiling ?
    50
    Picking the best debt-ceiling explainer is a very subjective task. Do you like charts? Then you'll probably like to have the debt ceiling explained in one chart.  Do you like movies? This one will explain the debt ceiling in 90 seconds.  Do you like cheese from Denmark? Then you will probably like…
    Tags: debt, debt-ceiling
  • Ready for FOMC ? What can we expect ?
    50
    The following are the expectations for the minutes of the January FOMC meeting by the economists at Bank of America Merrill Lynch, Citibank, Morgan Stanley, Barclays Capital, and other leading banks. http://www.efxnews.com/
    Tags: usa, fed
FED, Trading

Your Guide To Monitoring The Economy Just Like Janet Yellen

On Tuesday, Federal Reserve Chair Janet Yellen promised the House Financial Services Committee “a great deal of continuity” in monetary policy as she fills the shoes of Ben Bernanke.

 

However, Yellen is not Bernanke. And depending on her read on the economy, she will use her powers to influence the direction of monetary policy via the Federal Open Market Committee.

So what is Yellen watching out for?

Read more: http://www.businessinsider.com/morgan-stanley-monitor-economy-janet-yellen-2014-2

Related Posts

  • Stock market is regarded as the leading indicator of the economy
    83
    I will let you guess where we are in this "cycle". Within a fractional reserve banking system, if the Federal Reserve decreases the discount rate and the rate is lower than the long bond rate by enough of a spread, the banks get motivated to borrow at or close to the  discount rate and loan…
    Tags: market, economy, fed
  • Ready for FOMC ? What can we expect ?
    71
    The following are the expectations for the minutes of the January FOMC meeting by the economists at Bank of America Merrill Lynch, Citibank, Morgan Stanley, Barclays Capital, and other leading banks. http://www.efxnews.com/
    Tags: fed, economy
  • Raising the interest rate on 10-year Treasury bonds from today’s 2% to 4% — in line with Fed expectations — would halve the present value of the stock market.
    70
    If you’re thinking of investing in stocks (or bonds) because you can’t think of anywhere better to put your money, you might want to take a pause and ponder what Stanley Fischer, the vice chairman of the Federal Reserve, just said at a conference in Tel Aviv, Israel. Fischer, speaking…
    Tags: will, market, fed, federal, reserve, economy
  • Dr Faber predict stock market crash #Stockmarket #nasdaq
    66
    Dr Faber is predicting a 1987-type stock market crash this year only it will be worse. The US technology-heavy Nasdaq plummeted by 3.1 per cent on Thursday night (US time), its biggest one-day drop since November 2011. Dr Faber, the editor of the Gloom, Boom & Doom Report, has already…
    Tags: will, market, reserve, fed, federal, economy
  • Secular stagnation :: Is there something seriously wrong with the economy?
    65
    Is there something seriously wrong with the economy? It's a scary prospect, and a concern that's gotten louder and louder over the past year. In economic circles, it goes by the alliterative name of "secular stagnation." And it's a phrase that Fed watchers are likely to hear more and more in the…
    Tags: economy, fed, will, great, market
FED, Trading

Central Bankers wants KISS

This week, the U.S. Federal Reserve and the Bank of England both made welcome moves toward more simplicity. Specifically, they recast the “forward guidance” they’d previously given investors about their intentions.

http://www.bloomberg.com/

P:S

Definition of KISS

Related Posts

  • Is this the beginning of a crash? @reformedbroker
    70
    It certainly could be, but the odds do not favor it. Statistically speaking, it is far more likely that a run-of-the-mill correction is now underway and working its way through each sector of the market, to varying degrees of severity. Counter-trend rallies are sharp and short (think Wednesday), which is…
    Tags: uk, europe, economy
  • Two-Speed Recovery: US vs. EU
    68
    The August 2013 gross domestic product report by the US Bureau of Economic Analysis drew little attention, but it contained a fairly remarkable piece of data: Inflation-adjusted GDP per capita in the United States hit a new all-time high in the second quarter of 2013, the first time a new…
    Tags: uk, europe, economy
  • Kris eller uppgång för världen ?
    65
    För 10 år sedan verkade den globala ekonomin att vara på bättringsvägen.  Räntorna gick ner till 1 %, Storbritannien var i sitt 12:e år av oavbruten tillväxt, Kina var en del av WTO och alla trodde på att marknaderna själva kunde korrigera sig. Den monetära systemkrasch som kom var oförutsedd…
    Tags: uk, europe, economy
  • Why does the Central banks have a 2 per cent target?
    64
    (Source http://www.independent.co.uk/news/business/comment/david-blanchflower/david-blanchflower-we-should-fear-deflation--not-welcome-it-9986726.html ) The UK isn’t in deflation yet. While central bankers know what to do about stopping inflation, they don’t know what to do about halting deflation. The Swiss National Bank last week abandoned its attempt to defend a currency floor, which caused a sharp appreciation in its currency, which…
    Tags: uk, economy, bank, central
  • The European Debt Crisis Visualized
    64
    The European Debt Crisis Visualized http://www.bloomberg.com/
    Tags: http://www.bloomberg.com, europe, economy
FED, USA

Some points from Yellen’s Debut

Janet Yellen made her first public comments as Federal Reserve Chair in a grueling, nearly day-long, testimony to the House Financial Services Committee.  Her testimony made clear that we should expect a high degree of policy continuity.  Indeed, she said so explicitly.  The taper is still on, but so too is the expectation of near-zero interest rates into 2015.  Data will need to get a lot more interesting in one direction or the other for the Fed to alter from its current path.

http://economistsview.typepad.com/timduy/2014/02/yellens-debut-as-chair.html

Related Posts

  • #Yellen Suggests Roughly 6 Month Gap Before #Rate Increases After Bond-Buying Program Ends
    62
    Federal Reserve Chairwoman Janet Yellen on Wednesday said interest-rate increases could begin in the first half of 2015, around six months after it winds down its bond-buying program. The Fed, in its policy statement, said the benchmark federal-funds rate will remain near zero for a "considerable time" after its signature…
    Tags: yellen, fed, reserve, janet, federal, will, policy
  • Meet the #Fed’s new intellectual powerhouse
    61
    Janet Yellen led her first monetary policy meeting as chair last week. But with Yellen’s emphasis so far on consensus and continuity, the key news from the Fed last week wasn’t anything Janet Yellen said, but what Federal Reserve Board Governor Jeremy Stein said at the International Research Forum on…
    Tags: policy, federal, reserve, yellen, janet, points, continuity, fed, chair
  • Ready for Yellen Testimony ?
    60
    Here’s what to look for when Janet Yellen testifies before the House Financial Services Committee today in her first public remarks since becoming Federal Reserve chairman on Feb. 3. Yellen’s prepared remarks will be released at 8:30 a.m., and the hearing will begin at 10 a.m. Yellen plans to speak…
    Tags: yellen, will, committee, testimony, janet, services, financial, house, public, federal
  • The Fed Is Not As Powerful As We Think
    58
    This past week marked the annual gathering of bankers, financial officials, and other economic experts hosted by the Kansas City Federal Reserve Bank in Jackson Hole, Wyoming. On Friday, Fed Chair Janet Yellen and European Central Bank head Mario Draghi both spoke; in a slow week for the markets, these…
    Tags: fed, chair, financial, yellen, reserve, federal
  • When Will the Fed End Its Zero Rate Policy?
    56
    U.S. Treasury yields and other interest rates increased in the months leading up to the Federal Reserve’s December 2013 decision to cut back its large-scale bond purchases. This increase in rates probably at least partly reflected changes in what bond investors expected regarding future monetary policy. Recent research on this…
    Tags: policy, fed, interest, rates, federal, reserve, will
FED, USA

Ready for Yellen Testimony ?

Here’s what to look for when Janet Yellen testifies before the House Financial Services Committee today in her first public remarks since becoming Federal Reserve chairman on Feb. 3. Yellen’s prepared remarks will be released at 8:30 a.m., and the hearing will begin at 10 a.m. Yellen plans to speak to the Senate Banking Committee on Feb. 13 in a second day of semi-annual testimony.

http://www.bloomberg.com/

(zerohedge) Goldman’s 5 Key Questions For Janet Yellen

Related Posts

  • #Yellen Suggests Roughly 6 Month Gap Before #Rate Increases After Bond-Buying Program Ends
    77
    Federal Reserve Chairwoman Janet Yellen on Wednesday said interest-rate increases could begin in the first half of 2015, around six months after it winds down its bond-buying program. The Fed, in its policy statement, said the benchmark federal-funds rate will remain near zero for a "considerable time" after its signature…
    Tags: yellen, fed, reserve, janet, federal, will
  • Fed's monetary stimulus turned to high ?
    76
    Prior to the Fed's monetary stimulus at the start of financial crisis in 2008, the Fed held around $900 billion assets. Today the Fed's assets are $4.1 trillion and rising, but at a tapering pace.
    Tags: today, fed, financial
  • The Fed Is Not As Powerful As We Think
    76
    This past week marked the annual gathering of bankers, financial officials, and other economic experts hosted by the Kansas City Federal Reserve Bank in Jackson Hole, Wyoming. On Friday, Fed Chair Janet Yellen and European Central Bank head Mario Draghi both spoke; in a slow week for the markets, these…
    Tags: fed, financial, yellen, reserve, federal
  • Meet the #Fed’s new intellectual powerhouse
    74
    Janet Yellen led her first monetary policy meeting as chair last week. But with Yellen’s emphasis so far on consensus and continuity, the key news from the Fed last week wasn’t anything Janet Yellen said, but what Federal Reserve Board Governor Jeremy Stein said at the International Research Forum on…
    Tags: federal, reserve, yellen, janet, ready, questions, key, fed
  • When Will the Fed End Its Zero Rate Policy?
    71
    U.S. Treasury yields and other interest rates increased in the months leading up to the Federal Reserve’s December 2013 decision to cut back its large-scale bond purchases. This increase in rates probably at least partly reflected changes in what bond investors expected regarding future monetary policy. Recent research on this…
    Tags: fed, federal, reserve, will
FED, Trading, USA

Fed Chair Janet Yellen’s first testimony 11-Feb-2014

Fed Chair Janet Yellen’s first testimony before Congress is the big event for markets in the week ahead, as traders sift through economic data to see if the softness that showed up in January’s jobs is more about bad weather, or something more worrisome.

Yellen, who took the helm at the central bank Monday, has not been an active part of the speaking circuit like other Fed officials. So traders will study her every nuance to see if she is as dovish as they expect her to be, while also promoting a tapering back of the Fed’s bond-buying program. The Fed has cut back twice and is now buying $65 billion a month, a program expected to wind down before year end.

Related Posts

  • How Economics PhDs Took Over the Federal Reserve
    10000
    There was a lot of uncertainty and debate last summer and fall over whether President Obama would appoint Janet Yellen or Larry Summers as Federal Reserve chair. What wasn’t really up in the air was whether the new head of the world’s most powerful central bank would have a doctorate in economics.…
  • FOMC not so important this month
    74
    The Federal Open Market Committee releases minutes from its last meeting on Wednesday afternoon, but Wall Street is already downplaying the event as a sideshow in comparison to an annual symposium on monetary policy in Jackson Hole, Wyoming, two days later. "The FOMC minutes are telling us about what happened…
    Tags: will, bank, ahead, fed, event, month, yellen, central
  • #Yellen Suggests Roughly 6 Month Gap Before #Rate Increases After Bond-Buying Program Ends
    69
    Federal Reserve Chairwoman Janet Yellen on Wednesday said interest-rate increases could begin in the first half of 2015, around six months after it winds down its bond-buying program. The Fed, in its policy statement, said the benchmark federal-funds rate will remain near zero for a "considerable time" after its signature…
    Tags: bond-buying, program, yellen, fed, billion, $, year, wind, janet, month
  • Fed's monetary stimulus turned to high ?
    65
    Prior to the Fed's monetary stimulus at the start of financial crisis in 2008, the Fed held around $900 billion assets. Today the Fed's assets are $4.1 trillion and rising, but at a tapering pace.
    Tags: fed's, $, tapering, billion, fed
  • The Fed Is Not As Powerful As We Think
    65
    This past week marked the annual gathering of bankers, financial officials, and other economic experts hosted by the Kansas City Federal Reserve Bank in Jackson Hole, Wyoming. On Friday, Fed Chair Janet Yellen and European Central Bank head Mario Draghi both spoke; in a slow week for the markets, these…
    Tags: fed, chair, economic, yellen, week, bank
FED, Trading, USA

When will FED rise the funds rate ?

Before the weak employent report of the 10 Jan 2014, traders expected the fed funds rate to average 0.45% in June 2015. That estimate is based on price movements in the June 2015 fed funds futures contract. Put another way, traders saw a high probability that the Fed would start a rate hike campaign by mid-2015. Now the expected fed funds rate in June 2015 is 0.265%, meaning a low probability of a Fed rate hike by then. This is an especially dramatic shift from last September, when the expected fed funds rate in June 2015 was 0.92%, which meant futures traders thought the Fed would already be a few rounds into a rate hike campaign by mid-2015.

Remember FED officials have been hammering home the message that “tapering isn’t tightening.” 

Related Posts

  • How Economics PhDs Took Over the Federal Reserve
    10000
    There was a lot of uncertainty and debate last summer and fall over whether President Obama would appoint Janet Yellen or Larry Summers as Federal Reserve chair. What wasn’t really up in the air was whether the new head of the world’s most powerful central bank would have a doctorate in economics.…
  • Fed's monetary stimulus turned to high ?
    10000
    Prior to the Fed's monetary stimulus at the start of financial crisis in 2008, the Fed held around $900 billion assets. Today the Fed's assets are $4.1 trillion and rising, but at a tapering pace.
    Tags: fed
  • When Will the Fed End Its Zero Rate Policy?
    66
    U.S. Treasury yields and other interest rates increased in the months leading up to the Federal Reserve’s December 2013 decision to cut back its large-scale bond purchases. This increase in rates probably at least partly reflected changes in what bond investors expected regarding future monetary policy. Recent research on this…
    Tags: fed, rate, expected
  • The Feds revised their interest rate forecasts
    54
    The Feds revised their interest rate forecasts late last month hoping to normalize them faster than many market watchers would have anticipated. The new forecasts are higher, the projections having being raised for 2015-2016. This is a good move for extremely low rates can negatively affect the job hunt and…
    Tags: rate, fed
  • #Yellen Suggests Roughly 6 Month Gap Before #Rate Increases After Bond-Buying Program Ends
    52
    Federal Reserve Chairwoman Janet Yellen on Wednesday said interest-rate increases could begin in the first half of 2015, around six months after it winds down its bond-buying program. The Fed, in its policy statement, said the benchmark federal-funds rate will remain near zero for a "considerable time" after its signature…
    Tags: fed, rate