Steve Liesman

John Taylor Is Not Happy With Janet Yellen

During a lengthy and technical-jargon-ridden response, Fed Chair Janet Yellen attempted to defend the fact that she is holding rates around 350bps below "fair" value based on The Taylor Rule. Her argument, simple, John Taylor - the model's creator - is using the wrong rate. Fellow PhD economist Taylor was not amused and responded rapidly on Twitter...

Global Stocks Continue To Plunge As Central Banks Disappoint, Brexit Looms

Futures on the S&P 500 slipped 0.3%, as U.S. equities are on track to extend losses for a sixth day.  Europe's Stoxx 600 fell to a four-month low, sliding 1% for its sixth decline in seven days, and U.S. crude retreated for a sixth day in the longest losing streak since February. Bond yields sank to records in Germany, Australia after Japan as Federal Reserve Chair Janet Yellen said next week’s U.K. vote on European Union membership was a factor in the decision to hold interest rates steady. The Yen surged more than 2% as the Bank of Japan refrained from adding any new stimulus,

Peter Schiff Warns "This Is The Point Where The Fed's Real Problems Begin"

There is another cycle here that is much more influential on the current market dynamic and should be much easier to spot. When the Fed talks up the economy and promises rate increases, the dollar usually rallies. When the dollar rallies, U.S. multi-national corporate profits take a hit, and the market falls. When the market falls, economic confidence falls and puts pressure on the Fed to maintain easy policy. This is a loop that the Fed does not have the stomach to break.

Here Is What Janet Yellen Answered When Asked If The U.S. Is In An "Economic Bubble"

"...we tried carefully to look at evidence of potential financial instability that might be brewing and some of the hallmarks of that, clearly overvalued asset prices, high leverage, rising leverage, and rapid credit growth. We certainly don’t see those imbalances. And so although interest rates are low, and that is something that could encourage reach for yield behavior, I wouldn’t describe this as a bubble economy."

U.S. Futures Slide, Crude Under $39 As Dollar Rallies For Fifth Day

Following yesterday's dollar spike which, which topped the longest rally in the greenback in one month, the prevailing trade overnight has been more of the same, and in the last session of this holiday shortened week we have seen the USD rise for the fifth consecutive day on concerns the suddenly hawkish Fed (at least as long as the S&P is above 2000) may hike sooner than expected, which in turn has pressured WTI below $39 earlier in the session, and leading to weakness across virtually all global risk assets.

Peter Schiff Warns "The Fed Is Stuck In The Same Monetary Mud As In 2008"

The last thing the Fed can bear is for a recession that may be bubbling just under the surface to boil over into full view in the months heading into the election. If that occurs, we all may be seeing a great many press conferences from Mar-a-Lago. That is a development that I’m sure Janet Yellen wants to avoid at all costs.

SF Fed's Williams Says Will Push For Rate Hike As Soon As April

SF Fed president and flipflopper extraordinaire John Williams told Market News International in an exclusive interview that "he will be advocating for another interest rate hike as early as the April meeting of the Fed's rate-setting Federal Open Market Committee - or, failing that, at the June meeting - provided the economy continues to do as well as it has been." Maybe, or maybe not: "for now, though, the Fed is considering raising rates, not lowering them. Williams says such a move would be "appropriate" if inflation data continues to move toward 2% in coming months as he expects."