If a gap opens between a central bank’s promises and the market’s belief, the cost will be levied in the usual way with financial markets — volatility.
The trouble with forward guidance
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Posts Tagged: US Federal Reserve
Fed may wait, you shouldn’t
Financial markets ought to sell off no matter what the U.S. Fed does about tapering, but almost certainly they won’t.
Volcker rule’s devil lies in the details
The approval of the final version of the Volcker rule, a restriction on banks’ proprietary trading, is being billed as the toughest piece of U.S. financial-markets regulation to come out of the aftermath of the 2008 global financial crisis.
Twitter and the coming crisis
In the week that Twitter went public at a stratospheric valuation the U.S. Fed set the stage for yet more aggressive monetary policy. Both events will bear some bitter fruit.
The QE deflation puzzle
The evidence that central banks’ main policy response to the Great Recession, quantitative easing, can kindle inflation, much less revive an economy, is decidedly mixed.
U.S. Fed seeks to get out from between a rock and a hard place
U.S. central bank feels the time is right to start putting away the unorthodox monetary policy that has come to define the aftermath of the 2008 financial crisis.
August jobs report does U.S. Fed few favors
Photo Credit: Getty Images/Alex Wong
The U.S. jobs report for August released Sep. 6 illustrates perfectly why Federal Reserve policymakers are divided over whether and when to start reining in the central bank’s stimulus.
Taper talk meets data reality
The emphasis on the taper by the Fed is puzzling if you only take into account what the central bank actually says, and compare it to the data the economy is actually recording.
What difference does it make who runs the U.S. Fed?
All the leading candidates to succeed Ben Bernanke (above) as Fed chairman are, to one extent or another, products of a dynamic, technocratic system that has done better than most political establishments in attending to the needs of the common people.
Looking for clues as to when the Fed will first raise rates
An eventual end to the U.S. Fed’s asset purchase program is taken as a given; what matters to investors now is how long will the central bank hold off on raising interest rates.
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