inflation

I caught this at the bottom of Andy Lees' morning note: China – To limit inflation China will impose price controls on food according to the NDRC, and will severely punish anyone found speculating on corn or cotton. “The policies that…

Morgan Stanley had a note out yesterday on the pass-through of commodity price inflation into consumer price inflation. Their conclusion is that the pass-through will be weak. But, at the margin this will keep the U.S. from tipping into…

The Fed, for whatever reason, has induced a shift in private portfolio preferences simply by talking about something.  But I think the point commentators like the Pragmatic Capitalist make is indisputably correct.  The policy…

The Federal Reserve is attempting to reflate the US economy to close the output gap and create jobs. They have decided to purchase medium-term Treasury paper to do so. But monetary policy is a blunt instrument. QE is already having all…

Tomorrow the Federal Reserve will make an important and much anticipated announcement about monetary policy over the coming months. The main question for most market watchers and economists has to do with quantitative easing, or QE. It is…

The Institute for Supply Management (formerly the National Association of Purchasing Management) releases the widely-followed Report On Business® each month.  This is considered the most important data set in the manufacturing sector.…

The Fed’s announcement of a renewed commitment to Quantitative Easing has been well telegraphed and the market’s reaction is likely to be subdued. We are in a “liquidity trap,” where interest rates or trillions in asset purchases may…

Frederick Sheehan is the author of Panderer to Power: The Untold Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession (McGraw-Hill, 2009). To the Financial Times, October 7, 2010: Dear Sirs, It is…

In our September 28 Salvo, we imagined an opportunity to ask Chairman Bernanke the following question: “What does the Fed do if it expands its balance sheet to $4 trillion or $6 trillion, drives the 10-year yield down to 2% or less, but…

Good interview on Bloomberg with David Blanchflower. He thinks the US is going to manipulate its exchange rate by printing a bunch of dollars, leading to currency revulsion and selling of dollars. Meanwhile everyone else is fixated on…