All Entries Tagged With: "benbernanke"
Fed’s Operation Twist Tanks Markets, Strengthens US Dollar
On Wednesday, the Federal Open Market Committee (FOMC) released its most recent rate decision. To the surprise of no one, the Federal Reserve opted to keep interest rates at current levels near 0%. More important was the Fed’s decision to implement “operation twist.” Many market players anticipated the twist, although it still represents a radical [...]
IMF Predicts Slower Growth, Lower Inflation, and a Weak Housing Market
On Tuesday, the International Monetary Fund (IMF) released a report regarding the global economy. The report was particularly bearish. “The global economy has entered a dangerous new phase,” stated the IMF’s chief economist Oliver Blanchard. “Markets have clearly become more skeptical about the ability of many countries to stabilize their public debt. Fear of the [...]
Fed’s Meeting May Be Major Milestone
On Tuesday, the Federal Open Market Committee (FOMC) is set to meet. That meeting may very well be the most important in years. Although it is highly unlikely that the Federal Reserve will change interest rates, market participants may be looking for the possibility of further Fed intervention. That intervention may take the form of [...]
Despite Inflation, Bank of England Official Wants More Easing
On Tuesday, the consumer price index in the U.K. rose 4.5% on an annual basis, up 0.1% from a month before. The Guardian reports that the increase in the rate of inflation was driven by a rally in the price of energy bills, as well as spiraling prices in clothing and footwear. The rise in [...]
Is Bernanke Out of Bullets?
On Thursday last week, the Chairman of the Federal Reserve—Ben Bernanke—gave a speech in Minneapolis. In his speech, Bernanke addressed the current economic climate and the possibility of further Fed support. In recent weeks, some market commentators have begun to characterize the Fed as being “out of bullets.” Some have alleged that, after two consecutive [...]
Fed’s Minutes Shed More Light on Division
On Tuesday, the minutes from the Federal Open Market Committee’s (FOMC) last meeting were released. The minutes appeared to show that the Fed is, at present, a deeply divided institution. This has been known for quite some time, as three of the FOMC’s members dissented from the FOMC’s last official decision—a rarity, as such an [...]
Countdown to Nonfarm Payroll
On Friday, the August nonfarm payroll number will be released. Analysts are anticipating an increase in payrolls of 75,000. While an exceptionally positive or negative report could send the market moving wildly in either direction, the number may ultimately have a much larger effect than any in recent months. A week from Tuesday, President Obama [...]
The Bernanke Punt
On Friday, the Chairman of the Federal Reserve Ben Bernanke gave his annual speech in Jackson Hole, Wyoming. The speech had been widely anticipated for weeks. Last year, Bernanke used his Jackson Hole speech to lay the groundwork for the second round of quantitative easing (QE2). Given the recent sell-off on Wall Street, and the [...]
Have Gold Skeptics Been Validated?
After almost hitting $1,900 on Monday, Gold started to pull back on Tuesday, and sharply declined on Wednesday, dipping well below the $1,800 price mark. The precious metal has enjoyed a bull market for the last decade, although much of the action in the price of gold has occurred within the last several weeks. Since [...]
Market Rallies on Hopes for Fed Intervention?
On Tuesday, markets in the U.S. rallied. The Dow Jones, Nasdaq Composite and S&P 500 all showed big jumps. Curiously, data reported on Tuesday did not seem to support a rally, rather it may have confirmed ongoing fears that the U.S. economy has entered a double dip recession. New home sales were below expectations by [...]
