Fed’s Powell Rattles Markets With Retire Transitory Inflation and Speed Up Taper Comments

Federal Reserve System Chairman Jerome Powell took a decidedly hawkish tone today which sent US stock markets lower. Fed Chair Powell said it’s a good time to retire the word “transitory” and suggests its appropriate to taper more quickly. He was answering questions in today’s testimony at the joint Senate hearing with Treasury Secretary Janet Yellen before Senate Banking on Coronavirus and the CARES Act. The Fed Chair moved his bias toward the hawkish side which surprised many with the new … Continue reading “Fed’s Powell Rattles Markets With Retire Transitory Inflation and Speed Up Taper Comments”

Fed Chair Powell says Factors Pushing Inflation Upward Will Linger Into Next Year

Federal Reserve System Chairman Jerome Powel released his prepared testimony ahead of tomorrow’s 10:00 a.m. Senate hearing with Treasury Secretary Janet Yellen before Senate Banking on Coronavirus and the CARES Act. Headlines via Reuters Factors pushing inflation upward will linger well into next year  Inflation running well above 2% goal, pushed up by pandemic-related supply and demand imbalances Continue to expect inflation will move down significantly over the next year We will use our tools to support economy and strong … Continue reading “Fed Chair Powell says Factors Pushing Inflation Upward Will Linger Into Next Year”

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”

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 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

US Stockmarkets Hit Record Highs Ahead of Jackson Hole

The S&P, Dow and Nasdaq indices all hit record highs on Monday, continuing the sharp reversal off one month lows ahead of Jerome Powell’s speech at Jackson Hole, Wyoming set for Friday, though Fed officials will meet virtually for their annual symposium.

Federal Reserve Leaves Rates and QE Unchanged Says Inflation Risen Largely Reflecting Transitory Factors

The Federal Reserve kept rates unchanged at their July 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

Federal Reserve Leaves Rates and QE Unchanged But Brings Forward Rate Rises In 2023

The Federal Reserve kept rates unchanged at their June meeting, kept QE infinity open with TALF for open-ended Treasuries, MBS and corporate bonds in amounts needed. The big change is in the dot plot median for the end of 2023 now at 0.6% from 0.1% back in March.

Federal Reserve Leaves Rates and QE Unchanged Sending S&P 500 To Record High

The Federal Reserve kept rates unchanged at their April meeting, kept QE infinity open with TALF for open-ended Treasuries, MBS and corporate bonds in amounts needed. Fed will continue to buy paper at current pace of $120B/month of Treasuries and MBS combined. Compare that to $40B/month in QE3.

Fed Chairman Powell Says Too Low Inflation Harms Families and Business in Response To Senator Scott

Fed Chairman Powell comments came across the wires with an unannounced response to Senator Rick Scott (Fla R) that too low inflation harms families and business. On low treasury yields he said they attested to strong global demand for safe liquid assets.