monetary policy

I have spent some time this past weekend reading what investment manager Hugh Hendry has had to say about why he has turned bullish. And the clear takeaways are twofold. First, it is very difficult to ‘fight the Fed’ when it wants growth.…

Today is the day when the much anticipated jobs report was released. And the data were good. The jobs report was not the big news in my view, however, because at the same time we saw the jobs numbers we also got personal income numbers -…

The US November jobs data are generally stronger than expected. The closure of the government and the re-opening suggests a two month average offers a more accurate read, which as we noted, is fairly steady job growth in the US. There are…

- The euro was bid to new highs for the move earlier in Asia to $1.3640 before pulling back to the figure to await the ECB meeting - This price action cautions against expecting a reversal of the trend in response to today's developments,…

This lack of credit expansion is a dangerous trend that could result in years of Japan-style stagnation. In order to address it, one approach the ECB is contemplating is forcing the banking system to use the new LTRO proceeds to provide…

Five central banks from high income countries meet this week: Australia, Canada, Norway, Britain, and the euro area. None are expected to announce a change in policy – but if there is a surprise, it would most likely come from the The US…

My view since the beginning of the financial crisis has been that policy levers to alleviate this private debt stress are limited, and that this limitation will be felt in defaults, writedowns and deleveraging of a magnitude that is larger…

At its current pace the Fed is taking about half a trillion of MBS securities out of the market. In fact the Fed is now removing more than 100% of the paper that is being issued.

The global economic recovery continues as all of the most important economies in the world are on track for growth. Europe is the laggard and the tepid recovery there could still stall out. Below are some brief ideas on where this is headed…

Below is the full text of a Speech by Federal Reserve Chairman Ben Bernanke on communication and monetary policy that includes his view on the Fed’s large scale asset purchase program. His ideas give greater clarity to how the Fed thinks…