For the first time in several years, economic uncertainty is now their lead concern, replacing worries about the difficulty of hiring and retaining talented workers...
So... everything's economically awesome (apart from the biggest liquidity crisis in over a decade) but we should cut rates? Just don't say "mid-cycle adjustment" - they don't like that!
A significantly divided Fed cut the headline rates by 25bps and lower the IOER by 30bps but failed to address the liquidity crisis directly with any talk of POMOs.
Neither loose monetary policy, nor big-spending fiscal policy can grow an economy. All that these policies can do is to redistribute a given pool of real savings from wealth generators towards non-wealth generating activities...
...part of the problem the EU has going forward is that much of the EU is simply uncompetitive. This means unless it takes strong action to halt the importation of cheap Chinese consumer goods it will be flooded with them in coming years...
For now the UK seems to have escaped the global disinflation which started in Japan and is now being seen in Europe. That fits the BoE’s line, which is that they plan to hike rates, irrespective of the outcome of Brexit...
“Our performance continues to be negatively impacted by a weakening global macro environment driven by increasing trade tensions and policy uncertainty,”
...thanks to production of motor vehicles decreasing 1%, the most in four months, the worst news is that manufacturing production remains down on a YoY basis (-0.4% YoY) for the second month in a row...
Everyone “knows” the gold standard fostered those nineteenth-century panics, which high-minded bankers finally addressed by creating the federal reserve system in 1913...
