Monetary Policy

"The Fed Is Afraid..."

"...the Fed knows the economy is extremely fragile. This latest admission from Yellen serves to - yet again - manage expectations and tell us to not expect much of anything from the Fed in terms of normalization..."

Credit, Crypto, & Kuroda's "Bat-Shit-Crazy Monetary Expansion"

"This is bat-shit-crazy monetary expansion. Forget about arguing whether it is appropriate or needed. It doesn’t matter...What I find amazing is how complacent the markets have become about all of this...There will be consequences, we just don’t know what they are yet. Get your insurance while you can, not when you have to… "

What's The Matter With Inflation?

The divergence of official inflation as measured by the government versus inflation realized by the consumer and businesses has never been greater...

Kevin Warsh Fed Chair Odds Soar After WSJ Report Of Trump Meeting

Kevin Warsh's PredictIt odds to be the next Fed chair soared moments ago after the WSJ reported that President Trump and Treasury Secretary Steven Mnuchin met with the former Fed governor on Thursday to discuss his potential nomination as the next Federal Reserve chairman.

Global Bond Rout Accelerates Even As Dollar Rally Fizzles

In a continuation of trading patterns observed over the previous two days, on Thursday the global bond rout deepened in the aftermath of the release of President Trump’s tax-cut plan, Janet Yellen's recent hawkish comments and renewed optimism over the health of the U.S. economy.

Loonie Loses All 'Surprise Rate Hike' Gains As Canada's Poloz Gets Cold Feet

The Canadian Dollar is tumbling - erasing all the gains following September's surprise rate-hike - as in his first speech since the, Bank of Canada Governor Stephen Poloz warns there is no “predetermined path for interest rates” and said the central bank will proceed “cautiously” as it assess the performance of the economy from here on.

Dollar Surges, Bonds Dump Ahead Of Trump Tax Plan

S&P futures are set for a higher open (+ 0.1%) despite the expected hit to the Dow from Nike, as European stocks gain while Asian shares dropped. Like yesterday when the big story was the jump in the USD ahead of Yellen's (rather hawkish) speech, so today the greenback's levitation has continued, this time propelled by the imminent unveiling of Trump's tax plan.

One Trader Asks Whatever Happened To "Don’t Fight The Fed?"

"Traders aren’t yet convinced by another 2017 hike. Whether it’s because the Fed has lost credibility or just because Yellen is viewed as a lame duck approaching the end of her term, it doesn’t matter - U.S. rates and the dollar show investors aren’t buying what she’s selling."