- Tech-heavy NASDAQ is down over 1% after Netflix’s disappointing subscriber losses, but Tesla results put the worst of tech fears to bed
- FTSE100 up 0.4%, following mixed trading from Wall St and Asia
- US Federal Reserve chair Jerome Powell, ECB President Christine Lagarde and Bank of England governor Andrew Bailey are due to meet today, with inflation, interest rates and the Ukraine crisis likely to be discussed
- Oil price...
US Federal Reserve
Claustrophobia on Fed balance sheet, The future of regulation
Claustrophobia on Fed balance sheet, The future of regulation
Thursday 31 October 2019 – Vol.110 Ed.44.3
Commentary: Claustrophobia on Fed balance sheet
By Pierre Ortlieb in London
The US Federal Reserve’s key challenge for the next six months is managing its liabilities. For central banks, the enduring legacy of the 2008 financial crisis is that they are now a bulwark in money markets. Various new lending facilities and liquidity management practices are taking up space on the liability side of...
China must rethink growth model, Monetary policy implementation and reserves management
China must rethink growth model, Monetary policy implementation and reserves management
Commentary: China must rethink growth model
By Mark Sobel in Washington
The global press treats readers to a daily diet of US-alleged harmful Chinese trade and currency practices, as if this were the only Chinese economic story. Last week, the International Monetary Fund released its 2019 China Article IV staff report. It offers a welcome respite from the press fare. Inevitably, it addresses trade and...
Powell pivots to patience, Roundtable with Hans Vijlbrief
US Federal Reserve Chair Jerome Powell
Commentary: Powell pivots to patience
By Darrell Delamaide in Washington
US Federal Reserve Chair Jerome Powell wanted to make sure everyone understood that the Fed has changed its stance and that patience is the new byword. Not gradual rises in interest rates, not balanced risks, but patience. The consensus statement following the Federal Open Market Committee meeting on January 30 included the word ‘patient’ with regard to any future ‘adjustments’ in...
Powell should ease US monetary policy, Financial instability series
Janet Yellen
Commentary: Powell should ease US monetary policy
By Desmond Lachman in Washington
In 2017, a key monetary policy mistake of the US Federal Reserve under Janet Yellen was to keep monetary policy too loose despite a strong increase in US stock prices. Hopefully Jay Powell does not make that mistake in reverse by keeping monetary policy unnecessarily tight despite a large fall in US equity prices. Powell’s change of tone on the need for further interest rate increases this year was...