August 4, 2021 | Daily JAM, Mid Term, Morning Briefing |
I wouldn’t call it the consensus yet, but financial market thinking seems headed toward a belief that the end of the Fed’s $120 billion a month in purchases of Treasuries and mortgage backed assets won’t be a big deal. Certainly not enough to upset the bond market or produce another temper tantrum. The belief hinges on forecast of demand and supply that sees them roughly in balance even after the Fed stops its buying. An end to Fed purchases would be a significant hit to demand. But it looks like the U.S. Treasury will be cutting back on bond auctions as about the same time. And that would leave demand and supply roughly where they are now.
October 16, 2020 | Daily JAM |
Readers of JubakAM.Com in comments to a number of my posts recently have been kicking around the question of whether the huge increase in passive investing strategies has changed volatility in the stock market. Passive investment strategies such as indexing now make...
October 8, 2019 | Daily JAM |
It quacks like quantitative easing. It walks like quantitative easing. But it's not quantitative easing. According to Federal Reserve chair Jerome Powell anyway. In a speech today, October 8, to the National Association for Business Economics, Powell said the Fed will...
September 12, 2019 | Daily JAM, Mid Term, Morning Briefing |
If it had come to a formal vote, there's a good chance that European Central Bank President Mario Draghi would have faced defeat in his efforts to revive quantitative easing at the central bank. But the bank doesn't usually hold a formal vote on a issue like this and...
September 9, 2019 | Daily JAM |
Will the European Central Bank revive its program of bond-buying when it meets on Thursday? The bank only ended this program of quantitative easing in December. The markets are currently pricing in a new program of 40 billion euros a month in bond purchases--plus a...
August 19, 2019 | Daily JAM, Morning Briefing |
Gotta love that financial market enthusiasm for central banks. Last week the markets rallied on signals from the European Central Bank that it would cut its key interest rate--now at a negative 0.40%--to a negative -0.50%, lower the rates that banks pay to borrow...
July 2, 2019 | Daily JAM, Mid Term |
Christine Lagarde will move from heading the International Monetary Fund to take over the helm at the European Central Bank from outgoing President Mario Draghi. I think this is a generally positive piece of news. First, putting Lagarde in the chair means that...
December 11, 2017 | Daily JAM, Mid Term |
Both Citigroup and JPMorgan Chase are now predicting that average interest rates across the world’s advanced economies will climb to at least 1% in 2018. That might not seem like much, but remember that major economies such as Japan and the European Union now have negative interest rates. Overall the two Wall Street megabanks are telling investors to get ready for the biggest tightening of monetary policy since 2006, before the global financial crisis.
September 7, 2017 | Daily JAM, EFNL, Morning Briefing |
At today’s meeting the European Central Bank announced that it would leave interest rates in negative territory and continue to buy debt assets at the current monthly rate. In his post-meeting press conference ECB president Mario Draghi noted that despite an increase in economic growth in the EuroZone to 2.3% year over year in the second quarter, the bank has yet to see a sustained increase in the rate of inflation that would lead to a change in policy.
August 20, 2017 | Daily JAM |
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...
December 8, 2016 | Daily JAM, Morning Briefing |
The European Central Bank today extended its bond-buying program to the end of 2017 but cut the monthly purchases to 60 billion euros from 80 billion euros. That would take the total for this quantitative-easing effort to 2.2 billion euros ($2.4 billion.) That will bring the total for this round of quantitative easing to about double the estimated size of the program at its inception in January 2015.
July 1, 2016 | Daily JAM, Morning Briefing, Short Term |
While other central banks–the Bank of England and the Bank of Japan, for example–are signaling their willingness to throw more cash at the global financial system in the wake of the Brexit vote that is likely to send the United Kingdom tumbling out of the European Union, Jens Weidmann, president of Germany’s Bundesbank, doesn’t want to play.
