Ever heard of the Taylor Rule?
Not many people have, but the folks at the U.S. Federal Reserve are very familiar with it – and they’d probably prefer that this highly respected guideline for the federal funds rate languish in obscurity.
There’s considerable dissension within the ranks at the Federal Reserve, with many of Chairman Ben Bernanke’s colleagues saying the Fed’s monthly purchase of $85 billion in bonds should end by late this year.
“About half” of 19 Fed members “indicated that it likely would be appropriate to end asset purchases later this year,” according to minutes of the June Fed policy-making committee meeting, released Wednesday.
Liquidity indications were mixed last week, with the Fed still not doing much while foreign central banks were net sellers (see Treasury update). Commercial banks…
The European bank panic, not the Fed’s action, is sending a tidal wave of cash into the Treasury market, causing yields to crash. That sends…
Monday, August 08, 2011
FOMC Preview
by CalculatedRisk on 8/08/2011 02:01:00 PM
There is a one day meeting of the FOMC tomorrow and no press briefing. In light of recent developments, the FOMC statement to be released around 2:15 PM ET Tuesday might …
The Fed and Treasury have tossed around enough walking around money to insure a good reception for Ben’s dog and pony show on Wednesday. Technically,…
Chairman Ben S. Bernanke will hold press briefings four times per year to present the Federal Open Market Committee’s current economic projections and to provide additional context for the FOMC’s policy decisions.
In 2011, the Cha…
Got this question from one of you.
QuoteDoes the Fed report what it’s bought (other than Treasury instruments)? Does it report whether it has bought equities and if so, how much?
And my answer-
Yes. It reports the operations every day. I post noti…
I speculated last week that the Fed would insert words in the FOMC statement recognizing that commodities inflation is a problem. Silly me, I thought…
Wall Street Examiner Professional Edition Fed Report last week, 1/22/11-
Executive Summary from page 1-
QuoteForeign Central banks continued to pull in their horns last week when they should be in the heavier buying phase of their Treasury buying cyc…
