Fed balance sheet normalisation

World economy 27th January 2022

Jay Powell Sets The Stage For Monetary Tightening

Juan Pedro Marín-Arrese | The hawkish and straightforward message Jerome Powell delivered yesterday surprised analysts and markets alike. They expected a non-committal press conference following a routine FOMC meeting. Instead, Powell unfolded the planned roadmap for monetary tightening. He even announced a rate hike in March, breaking the rule of refraining from providing precise tips on future action, coupled with a sharper than expected increase in federal funds rates. It…

World economy 15th January 2018

Debt and monetary normalisation, a complicated cocktail

After nearly a decade of easy money, the financial markets and the economy have not just become addicted to debt, but also indifferent to the continued growth in global debt.

Interviews 4th December 2017

“There Is Some Problem With The Productivity Statistics”

Mohamed El-Erian, currently chief economist with German insurance group Allianz, and touted as a possible sucessor to Stanley Fischer, believes that monetary policy cannot do any more. And that the governments of the democratic countries have not been capable of coordinating economic policies which solve the problems created by the last crisis.

World economy 26th September 2017

US Monetary Policy Normalisation: The Fed Will Not Organise Any Oktoberfest

Investors and observers have hailed the Fed’s decision to trim its balance sheet from October onwards as a turning point in the drive to normalise monetary policy. But a decline of $10 billion per month in the hefty portfolio the Fed has accumulated in recent years will hardly have any visible effect on the bond market.

World economy 22nd September 2017

Global Central Banks Put Monetary Policy Normalisation Plans On The Table

J.L. M. Campuzano (Spanish Banking Association) | The global central banks are putting their plans for monetary normalisation on the table. But they also recognise that inflation risks are contained in the short-term. That means they have a margin of time to proceed with monetary normalisation in a cautious and patient way.

World economy 20th September 2017

US Volatility: When Will You Return To The Market?

Nobody really knows why volatility has disappeared. In theory, there are more than enough reasons for the market to be nervous, and for investors to take advantage of this to obtain higher returns.

Markets 25th August 2017

European equities provide higher income than high-yield bonds

Currently, even yields on European high-yield bonds are below equity dividend yields, making investment in stocks a better way of generating income. For US bonds, the focus is on the Fed’s planned balance sheet normalisation.

World economy 23rd August 2017

Secular stagnation rears its head once again; the global economy is not yet back to normal after the crisis

The global economy is not yet back to normal after the crisis. The real figures continue to show that Larry Summers and his “Secular Stagnation” hypothesis are right. We are not strong. And every time we want to break the pessimism, the indicators are weak.

Draghi, Yellen will meet at Jackson Hole

World economy 21st August 2017

Jackson Hole: Yellen could provide clues on monetary policy; Draghi seen keeping low profile

US Fed chair Janet Yellen and ECB President Mario Draghi will both be speaking at the Jackson Hole conference later this week. They will be under close scrutiny from investors for any clues on future monetary policy decisions. Analysts believe the Fed should matter more than the ECB at this week’s event.