You can read today’s inflation data either way
The Federal Reserve would like to see inflation at its target rate of 2% or so before raising interest rates but the central bank certainly doesn’t want to hold off on a rate increase for so long that inflation runs out of control. For August the core PCE, the key measure since it excludes volatile food and energy prices, was up 0.2%. That brings the year over year change in core PCE to 1.7%. That’s a slight increase from the 1.6% annual rate seen in July.
Mexico’s interest rate rally looks to be 6 months behind Brazil’s
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...It’s Friday after a big post-Fed rally–time for some profit taking
Just enough bad news today to put an end to this week’s post-Fed meeting rally. As of 3:30 p.m. New York time, the Standard & Poor’s 500 was still up 1.3% for the week. But the index is down 0.48% today. Oil is off even more with West Texas Intermediate slinking 3.04%
Everything’s rallying after the Fed meeting
Yesterday, the Fed not only didn’t raise interest rates at its September meeting (a December increase gets odds of about 60%), but it also pointed toward interest rates rising more slowly in 2017 than projected in June. The Fed consensus now says two interest rate increases in 2017 rather than three. So the market got a present yesterday of lower rates for longer. Hence today’s rally
Fed does nothing on interest rates as expected; slows forecasted pace of increases in 2017
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...Bank of Japan does even less than expected today
The Bank of Japan threw the country’s financial sector a bone today–not much more than that certainly. At its regular monetary policy meeting the Japanese central bank said it would keep its short-term policy rate at a negative 0.1% while working to keep the yield on the 10-year government bond near 0%
Saturday Night Quarterback says, For the week ahead expect…
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...Why next week’s Bank of Japan meeting is roiling the markets
Next week it’s actually the Bank of Japan meeting rather than the Federal Reserve’s that has the most power to move financial markets in the short run. Partly that’s because the Federal Reserve’s isn’t likely to do anything at its September 21 meeting. But partly its because there is real uncertainty about what the Bank of Japan might do at its September 21 meeting. The worry is that the bank will decide to cut back on purchases of long-term bonds and at the same time reduce short-term interest rates further
Markets stage another big move–downwards this time–on today’s bad news on oil surplus
Volatility is back. Although there’s been a “reason” for each move of the past three sessions, I think what we’re seeing is a return of nervousness on a realization that bonds and stocks are expensive right now and therefore risky since traders and investors really don’t know which way news is going to break on key factors such as economic growth, central bank stimulus, and Federal Reserve interest rates.
Financial markets stabilize as a Fed dove on interest rates stays dovish
Federal Reserve governor Lael Brainard, one of the most vocal opponents of raising interest rates soon, remained dovish in her remarks today. And that allowed financial markets to stabilize after last Friday’s sell off
Saturday Night Quarterback (on a Sunday night) says, For the week ahead expect…
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...Jim’s Stock Alerts
Download Jim’s eBook for Free
