Talk that Russia could be behind the bulk of the more than $100 billion drop in the Federal Reserve’s custody holdings for foreign central banks in the week ending Wednesday has many observers scratching their heads. This would represent about eighty percent of their dollar holdings.
As we noted earlier, rather than selling the Treasuries, Russia simply transferred them from the Federal Reserve out of the U.S. The incentive would be the threat of sanctions following this week’s Crimean referendum.
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…
11 Ugly Charts That Confirm China's Dramatic Slowdown During the National People's Congress, China's policymakers announced that it would target 7.5% GDP growth target for 2014. This is down from 7.7% growth in 2013, and the recent data shows that the economy is clearly off to a slower start to…
Tags: read, economy, http://www.businessinsider.com, china
For 31-year old Beijing resident Wang Yuanzhi, talk about a bubble in Chinese property is not something to be too concerned about. "If you look at the real estate market in China, it has already seen a golden decade of extreme fast growth. There will still be room for growth…
China's central bank is prepared to take its strongest action since 2012 to loosen monetary policy if economic growth slows further, by cutting the amount of cash that banks must keep as reserves, sources involved in internal policy discussions say. A cut would be triggered if growth slips below 7.5…
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…
When President Obama took office in 2009 at the height of the recession, the annual budget deficit came in at 10.1 percent of gross domestic product — a level not seen since the end of World War II. In the five years since, the budget deficit has been sliced more than half. New figures in Obama’s just-released budget put it at only 3.7 percent of GDP in 2014. Explore 60 years of deficits – and the occasional surplus – in the interactive chart below.
America has allowed its oil companies to export oil as announced in private letters to oil companies. This will, for sure, cause a stir in the global oil markets and lead to lower prices. Global oil prices previously soared due to the fall in the supply of oil- stoppage of oil exports…
U.S. economy added 533,000 jobs during the first three months of the year What do we need to analyse ? -To keep pace, job creation would need to accelerate in April -Watch which sectors of the economy are adding jobs. -Flirting with Full Employment -Average hourly earnings -The participation rate…
Most people that discuss the "economic collapse" focus on what is coming in the future. And without a doubt, we are on the verge of some incredibly hard times. But what often gets neglected is the immense permanent damage that has been done to the U.S. economy by the long-term…
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/
If trade and financial sanctions were imposed on Russia, the cost to the UK might well exceed the cost to Russia. That is presumably why the Foreign Office wrote - in a document carelessly (or deliberately?) displayed yesterday for the lenses of photographers - that "the UK should not support…
Perhaps the most notable development in the run-up to Friday’s jobs report is just how low the bar has been set.
The fact that the survey period over which the U.S. Bureau of Labor Statistics collected data for the report (the week that included the 12th of February) coincided with nasty winter storms has received a ton of attention on the Street and in the press.
Moreover, Wednesday’s economic data docket delivered two data points that further served to reduce expectations. The first one was payroll-processing firm ADP’s February National Employment Report, which estimated only 139,000 workers were hired to private-sector payrolls last month (below market economists’ consensus 155,000 forecast). The second one was the Institute for Supply Management’s February survey of non-manufacturing firms (the non-manufacturing sector accounts for around 80% of U.S. economic activity), the results of which were indicative of the first monthly contraction in hiring since 2010.
U.S. economy added 533,000 jobs during the first three months of the year What do we need to analyse ? -To keep pace, job creation would need to accelerate in April -Watch which sectors of the economy are adding jobs. -Flirting with Full Employment -Average hourly earnings -The participation rate…
Tags: nfp, jobs, economy, usa, month, u.s, employment
The Labor Department reports on the number of people who applied for U.S. unemployment benefits last week. The report will be released at 8:30 a.m. Eastern time Thursday. APPLICATIONS MAY STAY LOW: Economists forecast that the number of people seeking benefits will dip 1,000 to a seasonally adjusted 330,000, according…
America has allowed its oil companies to export oil as announced in private letters to oil companies. This will, for sure, cause a stir in the global oil markets and lead to lower prices. Global oil prices previously soared due to the fall in the supply of oil- stoppage of oil exports…
When President Obama took office in 2009 at the height of the recession, the annual budget deficit came in at 10.1 percent of gross domestic product -- a level not seen since the end of World War II. In the five years since, the budget deficit has been sliced more…
The Labor Department’s initial estimate of August job growth on Friday is expected to show another solid month of hiring. Economists surveyed by The Wall Street Journal forecast the economy added 225,000 jobs, which is roughly in between the 12-month average of 214,000 and the 3-month average of 245,000. The unemployment…
If trade and financial sanctions were imposed on Russia, the cost to the UK might well exceed the cost to Russia.
That is presumably why the Foreign Office wrote – in a document carelessly (or deliberately?) displayed yesterday for the lenses of photographers – that “the UK should not support for now trade sanctions or close London’s financial centre to Russians”.
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…
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…
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…
America has allowed its oil companies to export oil as announced in private letters to oil companies. This will, for sure, cause a stir in the global oil markets and lead to lower prices. Global oil prices previously soared due to the fall in the supply of oil- stoppage of oil exports…
When President Obama took office in 2009 at the height of the recession, the annual budget deficit came in at 10.1 percent of gross domestic product -- a level not seen since the end of World War II. In the five years since, the budget deficit has been sliced more…
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 high had been reached since 2007. Real consumer spending has hit a new high, too, and auto sales are at levels not seen since before the financial crisis. Millions of Americans are still searching for work and suffering financial hardship, but on average, by the broadest measures of economic performance, America’s Great Recession is over.
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…
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…
If trade and financial sanctions were imposed on Russia, the cost to the UK might well exceed the cost to Russia. That is presumably why the Foreign Office wrote - in a document carelessly (or deliberately?) displayed yesterday for the lenses of photographers - that "the UK should not support…
The pound rose the most in two months versus the dollar this week as manufacturing and production data signaled the U.K. recovery is on track, boosting bets the Bank of England will raise interest rate and is going to nudge higher throughout the course of this month The pound gained…
10 years ago, the global economy seemed to be on the mend. Interests rates down to 1%, UK was in its 12th year of uninterrupted growth, China was a part of WTO and everyone firmly believed in self correcting markets. The monetary system crash was unforeseen and a surprise. IMF…
The Labor Department reports on the number of people who applied for U.S. unemployment benefits last week. The report will be released at 8:30 a.m. Eastern time Thursday.
APPLICATIONS MAY STAY LOW: Economists forecast that the number of people seeking benefits will dip 1,000 to a seasonally adjusted 330,000, according to a survey by FactSet. That level is roughly in line with pre-recession figures, a sign that corporate layoffs are low.
U.S. economy added 533,000 jobs during the first three months of the year What do we need to analyse ? -To keep pace, job creation would need to accelerate in April -Watch which sectors of the economy are adding jobs. -Flirting with Full Employment -Average hourly earnings -The participation rate…
Perhaps the most notable development in the run-up to Friday's jobs report is just how low the bar has been set. The fact that the survey period over which the U.S. Bureau of Labor Statistics collected data for the report (the week that included the 12th of February) coincided with…
Australia’s unemployment rate climbed to the highest level in more than 10 years in January, spurring traders to pare bets on an interest-rate increase and sending the Aussie to its biggest drop in almost three weeks. The jobless rate rose to 6 percent from 5.8 percent, the statistics bureau said…
America has allowed its oil companies to export oil as announced in private letters to oil companies. This will, for sure, cause a stir in the global oil markets and lead to lower prices. Global oil prices previously soared due to the fall in the supply of oil- stoppage of oil exports…
When President Obama took office in 2009 at the height of the recession, the annual budget deficit came in at 10.1 percent of gross domestic product -- a level not seen since the end of World War II. In the five years since, the budget deficit has been sliced more…
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.
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…
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…
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…
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
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
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.
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…
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.
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…
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…
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…
The House could vote as early as Wednesday on legislation to raise the country’s borrowing limit, after Republicans met on Monday night in their latest effort to find elusive consensus on one of the final must-pass objectives before Washington goes into election mode.
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…
U.S. Treasury Secretary Jack Lew urged Congress Friday to increase the debt ceiling, saying he is not confident extraordinary measures will last beyond Feb. 27. In a letter addressed to House Speaker John Boehner, Lew highlighted that the Treasury must start implementing "extraordinary measures" to continue to pay the nation's…
Tags: congress, limit, borrowing, debt, ceiling, house
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…
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…
There is no reason to further extend a European Union deadline for France to cut its budget deficit, the EU's top economic official said on Saturday, adding policy-makers should have learnt the lessons of the debt crisis and stuck to agreed rules. In June last year Paris got two more…
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.
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.…
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
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…
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.
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…
