Jerome Powell Re-nominated Fed Chair With Lael Brainard Vice-Chair

In what the Press had us believe was a close race The White House took the sensible route and nominated Jerome Powell for a second four-year term, according to a statement. PredictIt had Powell at a 79% favorite. Lael Brainard will be nominated as vice-chair replacing Richard Clarida. She was expected to get vice-chair of supervision if not chair. The White House said both Powell and Brainard share the administration’s focus on ensuring that economic growth broadly benefits all workers … Continue reading “Jerome Powell Re-nominated Fed Chair With Lael Brainard Vice-Chair”

Fed’s Waller Wants a Faster Taper With Concern If Inflation Embedded Into Wage Demands

The Federal Reserve is continuing to voice it’s concern about inflation, wages and disparities between those who benefited from asset inflation and those who have been hurt by it. Fed Governor Christopher Waller said on Friday the rapid improving job market market and deteriorating inflation data have pushed him towards favoring a faster pace of tapering and more rapid removal of accommodation. “The rapid improvement in the labor market and the deteriorating inflation data have pushed me towards favoring a … Continue reading “Fed’s Waller Wants a Faster Taper With Concern If Inflation Embedded Into Wage Demands”

Seeing Broader Based Increases in Inflation – NY Fed Williams

The New York Fed president John Williams, hwo is a voting member continued with his hawkish tilt of late. His comments roiled financial markets somewhat with selling in the more speculative names such as those in Russell 2000 index. He also focused on familiar themes saying supply constraints are a major factor on the labor market and supply chain bottlenecks. “We definitely have seen a pickup in underlying inflation in the U.S. that we’ll be studying carefully,” Williams said during a virtual … Continue reading “Seeing Broader Based Increases in Inflation – NY Fed Williams”

Hawkish Bullard Cays Core PCE Is Quite High

Fed Governor speaking on BBGTV said US Core PCE Is “Quite High” and added that the Fed should take towards a more hawkish policy in the next couple of meetings. He said 3%-4% Rate `Is Not My Base Case’ Feds Bullard Speech Highlights Core PCE is quite high Fed should take towards a more hawkish policy in the next couple of meetings Markets are past the taper tantrum. The Fed could move further faster Fed taper increased to $30 billion … Continue reading “Hawkish Bullard Cays Core PCE Is Quite High”

Elevated US Producer Price Inflation Continues Including a 4.8% Jump in Final Demand Energy Prices

US Producer price inflation continues elevated. Annual PPI remained at a record 8.6%, unchanged from September. Over 60% of the increase in the index for final demand was due to a 1.2% increase in prices for final demand goods, which included a 4.8% jump in prices for final demand energy.

Federal Reserve Leaves Rates Unchanged, Begins Taper at $15Billion per Month as Expected

The Federal Reserve kept rates unchanged at their November meeting, Cut in pace of Treasuries $10B/month as expected, Cut in pace of MBS $5B/month as expected. Inflation is elevated, largely reflecting factors that are expected to be transitory

Federal Reserve Beige Book Highlights Positive Growth in Consumer Spending

The Federal Reserve released it’s Biege Book Wednesday with the focus on growth in consumer spending. Most Districts reported significantly elevated prices, fueled by rising demand for goods and raw materials.

Inflation Showing No Signs of Being Transitory Yet With US CPI Persistent Into September

Central Bankers keep trying to reassure us that soaring inflation is transitory. September US CPI shows us it remains persistently high. Annual CPI was up 5.4% up from 5.3% in August with core CPI steady at a dizzy 4.0%.

Federal Reserve Leaves Rates and QE Unchanged Says If Progress Continues as Expected, a Taper May Soon Be Warranted

The Federal Reserve kept rates unchanged at their September meeting, kept QE infinity open with TALF for open-ended Treasuries, MBS and corporate bonds in amounts needed. Inflation has risen, largely reflecting transitory factors. Inflation is elevated, largely reflecting transitory factors