Once more (at least) into the breach–Fed to put up to another $75 billion into money markets tomorrow in continuing attempt to end liquidity crisis
Here's the rather bland statement from the Federal Reserve Bank of New York: "In accordance with the FOMC Directive issued September 18, 2019, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will conduct an overnight repurchase...
Federal Reserve cuts interest rates by 25 basis points; Trump, financial markets disappointed by guidance on future cuts
Today the Federal Reserve lowered its main interest rate another 25 basis points to a range of 1.75% to 2%. To say that the Fed's Open Market Committee was divided on the decision would be an extreme understatement: Five officials wanted to keep rates unchanged, while...
If one Fed $53 billion intervention to supply cash to money markets is good on Tuesday, wouldn’t a second $75 billion surge of cash on Wednesday be even better?
On Tuesday the Federal Reserve intervened to supply liquidity to the short-term market for Money Market funds by buying $53.2 billion in securities. Late Tuesday the Fed said it was prepared to buy another $75 billion in the report market Wednesday morning. The...
This is important: Federal Reserve spent $53.2 billion on Tuesday to stabilize Money Market markets
On Tuesday the Federal Reserve bought $53.2 billion of short-term securities to stabilize the market for money market securities. A funding shortage on Monday and Tuesday had led rates on overnight general collateral repurchase agreements to climb as high as 10% and...
Special Report: 10 long-term picks for a short-term market (first seven picks)
(A word of apology. I hadn't realized that I had written about this Special Report but never posted it until several readers brought it to my attention last week. My initial reaction was "Impossible! Of course I'd posted it." But checking showed I hadn't. It took...
Saturday Night Quarterback says, For the week ahead expect…
...what else but the Federal Reserve. The U.S. central bank's interest rate setting body, the Open Market Committee, meets on Wednesday, September 18. As of Friday, September 13 the Fed Funds Futures market was pricing in a 78.5% chance of a 25 basis point cut in the...The financial markets–and especially Treasuries–continue their September trend reversal
One way to understand of the recent market action--one way that makes sense to me--is to think of it as a big short squeeze. The drop in Treasury yields and the climb in Treasury prices went to far in August with Treasuries showing their biggest monthly gain in the...
August jobs report disappoints; more evidence that U.S. economy is slowing
The U.S. economy added 130,000 jobs in August. Economists surveyed by Briefing.com had expected 171,000 new jobs. Once you subtracted the 25,000 new temporary jobs added by the government for the 2020 census, the results were even more disappointing with the private...
The market wants to believe today–rallying ahead of the Fed?
As of 2 p.m. New York time U.S. stocks were higher on just about no meaningful news. To me it looks like the market wants to climb in the very near term--testing technical momentum to move to 2950 on the Standard & Poor's 500 and maybe beyond. The "reasons" being...
Saturday Night Quarterback says (on a Sunday), For the week ahead expect…
... some things in the financial markets will be so similar to what they were before the Labor Day holiday that you might think you were never away at all. Not everything, though. Yes, the U.S.-China trade war will still be hanging fire. And the tariffs on $112...
Powell signals interest rate cuts but says that U.S.-China trade war is outside Fed’s policy framework
Good news and bad news for investors betting on a signal of lower interest rates from the Federal Reserve in Jerome Powell's speech at today's Jackson Hole central bank festival Financial markets were hoping that Powell would indicate that the Fed is thinking about a...Jim’s Stock Alerts
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