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.
FED
It Will Take More Than Three Years To Reduce Fed’s Balance Back To USD 2.5 Tr
Markets are currently looking to the US Federal Reserve’s (Fed) September policy meeting, scheduled for tomorrow and Wednesday. Given the Fed’s statement at its June 2017 policy meeting, the balance sheet reduction should begin gradually at USD 10 billion per month.
The Central Banks’ Tapering Process Is Slow But Sure
J.L.M. Campuzano (Spanish Banking Association) | The increase in the size of the central banks’ balance sheet has without doubt been one of the untraditional measures of the financial crisis. But the president of the ECB has anticipated that probably at its next meeting in October a scheme will be worked out to progressively reduce the asset buying programme.
Donald Trump’s Chance At A Good Deed
Benjamin Cole | With the announced mid-October resignation of U.S. Federal Reserve Vice Chairman Stanley Fischer, Donald Trump has a chance to do what Presidents Obama and Bush never did: appoint growth-oriented members to control nation’s central bank.
Wind Will Blow Strongly On The Fed After Stanley Fisher Resignation
Stan Fisher the Fed’s vice president has decided to resign at mid-October for personal reasons. This will dramatically change the internal equilibrium of the Fed’s board.
Jackson Hole provides little in the way of monetary policy update
On the whole, the Jackson Hole symposium provided very little in the way of fresh indications on either the Fed or the ECB’s monetary policy, market experts say.
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.
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.
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.
FED, ECB monetary policy: communication counts when doubts increase
The minutes released by the FED and the ECB last week shared concern about how to inform about their monetary stance. They fear unsettling the markets should investors wrongly interpret the messages conveyed to them. When you lack a clear policy perspective, the best thing you can do is to manage communication in a fairly tight way.