Why political meddling with central banks is a terrible idea
Central bank independence is increasingly at risk around the world.
rates
Be careful with the Taylor Law
We need to be aware of the existence of regulations over and above the well-known Taylor Law, starting with this regulation adjusted to establishing a downward limit on rates of 0%, which is very important in the US Fed’s case.
“What will the year 2018 be like?” A persuasion test
How do I see the year 2018? Low growth and productivity, a declining working population, and an unsustainable rise in animal spirits. Everything comes to an end, and the longer it takes, the worse it is.
BoE Hikes Rates For First Time In A Decade Amidst Dim Prospects Of Economic Growth
The BoE hiked on Thursday interest rates for the first time in more than 10 years by 25 bp to 0.5%. Given that UK growth continues at its lower potential pace with GDP forecasts at around 1.6%-1.7% between 2017-20, it seems that only one additional hike next year is likely. The country has been the 4th weakest economy in the OECD so far this year.
“After Two Flat Years, Investments In The US Are On The Rise”
Argemino Barro | The Conference Board is a non-profitable organisation set up just over half a century ago by 12 big corporations to soften their public image during a time of social unrest. Nowadays it offers analytic tools for different sectors of the economy and has 1,200 companies from 60 countries as partners. Its chief economist, Gad Levanon, analyses here the situation of the US economy in the Trump era.
Two Keys For European Equities In 2017: Political Uncertainty And Fed’s Rates Hikes
Analysts are predicting a positive 2017 for European equities, not least because they are currently undervalued compared with US stocks. But there are risks on the horizon due to political instability (elections in France, Germany and Holland, plus the effects of Trump and Brexit), and uncertainty over the timing of the Fed’s rate hikes.
The Fed And The Real Economy: Predictions
The Fed has increased its daily interest rate to 0.75%, saying it predicts three further hikes in 2017. This is called active and persuasive monetary policy. But the central banks are no longer the masters of the economy, whipping it into a place they want.
The Fed Move May Send Shock Waves
Analysts and markets alike are already discounting a 25 basis points rise in the Fed’s core rates this week. So investors’ reaction will depend largely on Janet Yellen’s message regarding future rate hikes. A vague gradualism no longer matches the kind of unequivocal commitment the markets are waiting for. Anything short of this could fuel general volatility and unrest.
Fed’s Rate Hike At Risk Of Being Politicised
Fed President Janet Yellen has pointed out very politely that the law to reform the central bank is “a serious mistake.” She believes monetary policy cannot be linked to indicators like in a mathematical formula.
ECB and BoE will not take any false steps
Focus in Europe today will be on the ECB and the Bank of England’s meetings. Neither Draghi nor Carney will change the course of their monetary policy.