monetary policy

The negative headlines are here and the tape bomb shows a failure to confirm the recent W-bottom, which has Andy Lees thinking about where the next stop is.

The question after the frightful period in 1907 was what to do to prevent another panic from causing a severe depression. Benjamin Strong, a senior executive at Bankers Trust and later the first President of the Federal Reserve Bank of New…

At some point soon, maybe tomorrow, I will be writing an update to two posts: The Fake Recovery and The recession is over but the depression has just begun. The gist of those two posts is still operative and also very relevant, namely that…

USD continues to surge amid safe haven demand; EUR breaks below 1.35, EM currencies drop 1-2.5%. The Fed delivered “Operation Twist” but bleak economic outlook continues to weigh on sentiment. Czech CB remains put, South African CB expected…

If you believed the Republican leaders, you would say this is reckless monetary policy aimed specifically at supporting President Obama, a Democrat. You saw the last post I wrote, with the court scene from “A Few Good Men” tacked on.…

The Fed is not just doing QE via Operation Twist, it is also throwing in some mortgage-backeds to up the ante a little bit.

I was on BNN this afternoon talking about the Fed running out of ammo, America banks getting downgraded, European banks needing $300 billion in capital, and Greece defaulting on its debt obligations plus a host of other issues – none of…

European market consolidates ahead of FOMC decision; GBP softer after potential for QE increases . Operation Twist is likely to be supportive of the dollar; dovish actions include QE and inflation target. Hungarian central bank likely to…

Reuters has reported that Bank of China, a dealer in China's foreign exchange market, has stopped doing foreign exchange forwards and swaps with several European banks. Separately, sources say the European banks involved are Societe…

BRL is one of the worst EM performers today, and continues a string of underperformance (-10.8% vs. USD) that began with the unexpected 50 bp rate cut August 31. Since then, only HUF has done worse at -11.5%. It’s really a confluence of…