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Posts Tagged ‘Federal Reserve’

Federal Reserve minutes show bank not yet ready for yield curve targeting

So Wall Street still has something to look forward to from the Federal Reserve. In the minutes from the June 10 meeting of its interest rate setting Open Market Committee, Federal officials said that they wanted to ind a way to provide more forward guidance on interest rates and asset purchases (although I'm puzzled at […]

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The debt load for consumers and companies just keeps rising

We'll soon get new figures from the Federal Reserve now that the second quarter is coming to an end today, but I'd guess that the debt picture won't be better than it was at the end of the first quarter on March 31. At the end of May non-financial corporate debt in the United States […]

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Don’t fight the Fed? Well, maybe

The advice "Don't fight the Fed" makes sense. If the Fed is flooding the financial markets with cash, then buy and follow along as the Fed makes money available to drive up asset prices. If the Fed is tightening, reducing the available supply of cash, then sell and move to the sidelines. It will be […]

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Fed announces names of its first direct corporate bond purchases

This strikes me as a bad idea. What could possibly go wrong? The U.S. central bank made $207 million in purchases on June 16, the first day of direct buying. The Federal Reserve bought bonds issued by, among other companies, AT&T (T), UnitedHealth Group (UNH), and Walmart (WMT). About 21% of corporate bond purchases were […]

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Selling Japanese yen ETF out of Jubak Picks Portfolio

A while back I sold the Invesco Currency Shares Japanese Yen ETF (FXY) out of my Perfect Five ETF Portfolio because I was looking for more diversification in that limited five ETF portfolio. (I replaced it with the iShares Large Cap China ETF (FXI) on April 20, 2020. That ETF is up 6.51% as of […]

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Wall Street’s hope for the next big thing from the Fed: Yield curve control

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Fed pledges to hold interest rates near 0% through 2022–stocks dip anyway

Could this be the first signs that the financial markets are questioning Goldilocks? Investors and traders heard almost everything they could have hoped to hear from the Federal Reserve's interest-rate setting Open Market Committee meeting today. Sure, the Fed didn't cut its current 0%-0.25% benchmark rate lower, but no one was expecting that. The Fed […]

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Saturday Night Quarterback (on a Monday) says, For the week ahead expect…

... the rally to extend on "good news" from the Federal Reserve. The Fed's Open Market Committee meets on Wednesday, June 10. The CME Fed Watch Tool says that there's just about no-chance that the Fed will move on its benchmark interest rate, now at 0% to 0.25%. The odds that the Fed will stand […]

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A near-term threat to the V-shaped recovery

Stock prices--3068.76 on for the Standard & Poor's 500 as of 1 p.m. New York time today--continue to climb toward the all-time closing record for the S&P 500 at 3386.15 set on February 19. That makes some sense if you believe that the Federal Reserve will continue to suppress interest rates--the yield on the 10-year […]

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Wall Street starts to watch something called the market price/liquidity ratio to justify this rally

The Standard & Poor's 500 stock index may be closing in on the February 19 record closing high of 3386.15--about 11.2% from the Friday, May 29, close at 3044.31, but some Wall Street strategists see more rally ahead--with a close at the end of 2020 near 3,500 as a popular target. That's even though unemployment […]

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