Will The Fed Start Reducing Its Balance Sheet? Here Is Goldman's Answer

"We would be very surprised to see a discussion of asset sales under Chair Yellen’s leadership, but a shift to more active management of the maturity of new Treasury purchases could be an option; shortening the duration of new purchases would quicken portfolio runoff once it begins." - Goldman Sachs

Jewish Trust Sues Deutsche Bank For $3 Billion

A Jewish charitable trust has sued Deutsche Bank, alleging the German bank wrongly withheld as much as $3 billion from the heirs to a wealthy German family. According to Bloomberg, the lawsuit claims the bank refuses to return the funds initially deposited by the Wertheim family in accounts opened at what is now Credit Suisse Group AG before the rise of the Nazis in Germany.

Oil Tumbles After Unexpected Crude Inventory Build

A mixed bag of crude draw and gasoline builds from API combined with IEA comments on rising US Shale output offset by Saudi jawboning about more production cuts possible has pushedoil green before today's DOE data. However, oil prices tumbled when DOE printed an unexpected 2.347mm barrel crude build (1mm draw expected) and another major build in gasoline inventories. US crude production remains at 9-month highs.

The End Of The Obama World Order

For the past eight years, Barack Obama has been using the power of the U.S. presidency to impose his vision of a progressive world order on the entire globe.  As a result, much of the planet will greatly celebrate once the Obama era officially ends on Friday.

US Economic Expectations Soar To 15 Year Highs... What Now?

Bloomberg's survey of economic expectations has soared since Donald Trump was elected and at 56.0 in January, it is the highest since 2002. This spike in 'hope' is occurring as the current economic situation is seen as deteriorating and, as the chart below suggests, this might be as good as it gets...

Live Stream: Steven Mnuchin Testifies As Democrats Go On The Offensive

In what is sure to be one of the fieriest confirmation hearings to date, Steven Mnuchin, Trump's pick for Treasury Secretary, is set to take questions from the Senate Finance Committee this morning as Democrats will undoubtedly being looking to score theatrical points with the working class folks of the Midwest by peppering the "Foreclosure King" with zingers on his time at Goldman Sachs and OneWest.

McCain's Hypocrisy Has No Bounds

"I am totally sick of fake-patriot, warmonger as*holes like senators John McCain, Tom Cotton, and Lindsey Graham... The US will be better off and the world will be safer the minute they retire."

Obama's Last Attack: US B-2 Bombers Strike ISIS Camps In Libya, Killing Dozens

With just 24 hours left in Obama's tenure, the U.S. president launched his final airstrike on ISIS after two B-2 bombers carried out airstrikes on two ISIS camps in Libya overnight, defense officials said Thursday, part of an operation targeting militants driven out last year from their coastal stronghold.

Philly Fed Soars As Prices Paid Spike To 5 Year Highs

Philly Fed continued to surge higher post-election with almost all subcomponents rising (apart from a decline in the average workweek). However, while the headline index is at two-year highs, Prices Paid soared to the highest since Feb 2012, and expectations for Prices Received dropped. The stagflationary pressures continue to build, but for now survey respondents seem happy about it...

Housing Starts Beat On Jump In Rental Units, Single-Family Permits Rise To Highest Since 2007

Continuing the trend of strong economic data, housing starts rose more than expected in December, hitting 1.226K in December, driven by a jump in mult-family units. Alternatively, housing permits declined modestly as new multi-family units dipped to the lowest since March, however offset by the highest single-family permits number since the financial crisis.

Initial Claims Crash To 44 Year Lows But Over 700,000 More People Are On Jobless Benefits Since Trump Was Elected

1.74mm people were 'continuing' to claim jobless benefits before Donald Trump was elected. In a mysterious fluke of statistical smoke and mirrors, that marked the absolute trough in the data series - showing just how awesome the economy was for Hillbama. Last week's 2.46mm print for continuing claims suggests (while seasonal aspects are at play), over 700,000 more people are now claiming unemployment benefits than before Trump was elected.

Will 'Dull Draghi' Talk Up Downside Risks? - ECB Press Conference Live Feed

With Yellen hell-bent on tightening into Trump's fiscal stimulus, and inflationary impulses popping up all around the world, ECB president Mario Draghi better note some serious downside looming (after leaving rates/taper unchanged) that opens the door to his un-tapering or the stagflationary pressures building everywhere willcome back to bite his precious asset prices.

ECB Leaves Rates Unchanged, Keeps QE At €60BN But May Revise It Higher Or Lower

While keeping rates and its QE program unchanged (at €60bn/month), the ECB warned that "if the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the programme in terms of size and/or duration."