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World economy 14th November 2013

Yellen On Tapering: Not Quite There Yet

NEW YORK | By Ana Fuentes | Thursday was Janet Yellen’s big day. In front of the Senate Banking Committee she ran through her prepared speech (released by the Fed on Wednesday) and acknowledged “the risks” of injecting QE steroids to the U.S. economy for too long. However, she argued,  inflation is still too low and unemployment rate, too high. “The benefits exceed the costs” of the Fed’s current policies, she said. Will we see any tapering soon? Certainly, but not yet.

Low quality of FED governors

World economy 14th November 2013

The low quality of some Fed Governors and the freedom to “speak-out”!

SAO PAULO | By Marcus Nunes | It is encouraging that Obama may soon have to fill up to 5 slots in the Board of Governors of the Federal Reserve. Maybe it´s expecting too much that he´ll think that´s a very important thing to happen at times like the present. He´s already ‘failed’ in a previous instance when he had 3 slots to fill, leaving them open for a long time and even failing to get an appointee approved! The low quality of some recent Fed Governors is glaring.

gdp plus 1

World economy 7th November 2013

GDP plus should be GDP less

SAO PAULO | By Marcus Nunes | For less bounce! The Philly Fed has called the measure of GDP obtained from “crushing” the usual measure of GDP (expenditure based) and the income-based measure GDI GDP plus…

John Taylor

World economy 30th October 2013

FED: If John Taylor can repeat himself, why can´t I?

SAO PAULO | By Marcus Nunes | When Bernanke took the Fed´s helm the gap had been closed. What happened going forward, in particular the complete loss of nominal stability in 2008, which made the financial crisis immensely more severe, is the doing of the Bernanke Fed.

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World economy 23rd October 2013

Modest payrolls, patient Fed

LONDON | By Barclays analysts | We now expect Fed to taper in March 2014. The September payroll report was on the soft side, with nonfarm payrolls rising 148k and private payrolls rising only 126k. These numbers were below our (200k) and consensus (180k) expectations for headline payroll growth. In light of the moderate tone of the September employment report, we have pushed out our expectation for the first Fed tapering in the pace of asset purchases to March 2014 from December 2013.

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World economy 9th October 2013

Janet Yellen: “Honored” to Become Next Fed’s Boss

THE CORNER | As expected, U.S. President Barack Obama appointed Janet Yellen as the Federal Reserve’s next leader, the first woman in the 100-year-history of the central bank. Among her first words: “More needs to be done to strengthen the recovery,” even though progress has been made, and: “too many Americans still cannot find a job and worry how they will pay their bills and provide for their families.” Were those hints about how she will deal with QE? Although she is considered a dove, some analysts believe that is a bit overstated. Anyway Obama called her “tough”,  joking that it was not just because she was born in Brooklyn.