Tag Archives: Fed

Trump signals the end of central bank independence

We live in such strange times that most people don’t even notice how quickly certain principles that until not long ago appeared fundamental for Western societies are being eroded.

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Zombies will prevent interest rates from rising too high

For those who are afraid of zombies, the Bank for International Settlements (BIS) has some bad news: they’re on the rise. What’s more, many people may be working for zombies.

But on the flip side, zombies may spook central banks enough that they don’t raise interest rates too high.

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As Fed changes to dovish, emerging markets could rally

As the US stocks bull market is now officially the longest after World War II, fears are increasing that the end is nigh for the bulls. However, the approach of the US mid-term elections in November might mean not just that the bull market could continue, but also the end of the emerging markets rout.

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Fed interest rate hikes could make China’s debt implode

While all eyes are still on Turkey, another emerging market is about to show the ugly side of quantitative tightening, and this time things could get really serious.

The world’s second largest economy has been a “success story” for so long that people have forgotten about China’s many vulnerabilities. Or rather, the Chinese communist party has been so good at keeping things under wraps, that few of the country’s weaknesses are known to the outside world.

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A ‘Powell put’ is not guaranteed for the markets

Everybody is waiting for Jay Powell, the new Fed Chair, to set out his vision this week. The main question is: will there be a “Powell Put” just as there has been a Greenspan put, a Bernanke put and a Yellen put?

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The great Fed unwind could cause market turmoil

A recent working paper published by the International Monetary Fund looks at the impact of unconventional monetary policy on an open economy, taking Canada’s case as an example.

The paper’s main finding is that unconventional monetary policy by the Canadian central bank has had expansionary effects on the Canadian economy. Continue reading

The real reason the Fed is hiking interest rates is scary

Some people wonder why the Federal Reserve is in such a hurry to raise interest rates, pointing out that growth in the world’s first economy is hesitant at best. Inflation, of course, is an issue — even the stripped-down official version of inflation, “core” as they like to call it, is rising.

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The Fed is behind the curve, and happy to stay there

There is a widespread view that the Federal Reserve will have to raise interest rates at a steady pace this year, because it cannot afford to fall behind the curve.

I would argue that it has already fallen behind the curve and has no choice but to remain there. And it is not the only one in this situation. All major central banks are playing the same game; they have no choice.

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Central bankers must walk the talk, or walk into the trap

By Mirela Roman

While central bankers are stepping deeper into territory they have never tried before (negative IR, QE), markets and also the public want solid proof that they Walk the Talk.

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Why are global stock markets crashing and for how long?

Global stock markets serve as a brutal reminder that nothing can ever be taken for granted when investing.

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