FED Hikes Rates

Fed Raises Rates, Signals More on the Way

The Federal Reserve raised interest rates on Wednesday and signaled that two additional increases were on the way this year, as officials expressed confidence that the United States economy was strong enough for borrowing costs to rise without choking off economic growth...

By | June, 14, 2018|Categories: Articles, Featured|Tags: , , , , , , , |0 Comments

3M INDICATOR FLASHING YELLOW

Danielle DiMartino Booth

New orders hold most-favored-indicator status for forward guidance on US economic growth. If you drew a heat map of the US, you’d find really hot spots for new orders in the Philly Fed District and a great swath of Midwest flyover states like those covered in the Kansas City Fed manufacturing survey...

By | June, 11, 2018|Categories: Articles, Featured|Tags: , , , , , , |0 Comments

Not All Inflation is Created Equal

Danielle DiMartino Booth

Can something be arbitrary and at the same time deeply damaging? Pursuing a strategy based on personal preference rather than reason can indeed inflict deep wounds if carried on for too long. Such is the case with the Federal Reserve’s preferred inflation metric, the “core PCE.” ...

By | June, 1, 2018|Categories: Articles, Featured|Tags: , , , , , |0 Comments

FED Remains Lost in Space

Words of Wisdom

Federal Reserve Board Chairman Jerome Powell on Friday gave a shout-out both to central banks’ independence but also their need to be transparent. Speaking at an event hosted by the Swedish central bank in Stockholm, Powell said the Fed’s independence is important to both its monetary policy and regulatory missions...

Danielle DiMartino Booth

‘Tis the season for bunnies, baskets and bill auctions. Wait – one of those did not belong. And yet, April will herald Treasury bill auctions that put optimists’ posits to the test. Is the spike in short rates a technical glitch that will right itself or is there an underlying issue?

Danielle DiMartino Booth

Call it the risk parity unwind. Pin it on Bitcoin’s downfall. Blame Facebook and trade tensions. But for my money, it’s all about Quantitative Tightening. Or as Nomura’s George Goncalves rightly identifies, what’s really got the markets on edge, is the triple tightening of rising LIBOR, rate hikes and QT...

By | March, 22, 2018|Categories: Articles, Featured|Tags: , , , , , , , |0 Comments