monetary policy

Realizing that the Larry Summers nomination as the next Fed chairman was going to face some tough opposition in Congress, the president decided to pick someone else. Of course the next obvious candidate is Janet Yellen. There could be…

While yields on treasury notes and bonds have risen across the board in 2013, the jump in rates has been uneven. The 5-10-year rates - the "belly" of the curve - have increased materially more than other maturities.

Over the past few years, investors who have expected aggressive monetary policy to produce high levels of consumer price inflation and have invested accordingly have been disappointed. The right question goes to why consumer price inflation…

We update our views on the main big picture drives for financial market: (1) Fed tapering (2) The stabilization of the Chinese economy (3) The cyclical recovery in Europe (4) The increase in Japanese purchases of foreign bonds

Both Bill Gross of PIMCO and Jan Hatzius of Goldman Sachs do not believe the weak jobs report will be enough to cause the Fed to call off its tapering of large scale asset purchases.

The U.S. Job Situation Summary was released this morning at 830EDT and the headline number of 169,000 jobs added to non-farm payrolls was just below consensus. Moreover, the unemployment rate dipped to 7.3%. Nonetheless, the reaction to the…

Something highly unusual is happening in the mortgage market however. Recently jumbo mortgage rates have been lower than conforming rates. This is one of those market dislocations that most would have never thought possible. Yet here we…

Based on the data from the Federal Reserve Bank of St. Louis here is a single chart that shows credit growth in the US is continuing to decline while the Fed's balance sheet is expanding.

India is about to get a new new central bank governor, Raghuram Rajan, a University of Chicago economist with outstanding academic credentials. He is expected to start this Thursday, smack in the middle of a financial crisis the likes of…

The problem in a nutshell is that the U.S. is the world's reserve currency. And so, other countries are forced to adhere to Fed dictates in a liquidity crisis because everyone is hoarding dollars, trying to maintain their supply of…