Archive for August 10th, 2010

Central Bank Watch

A Middle-of-the Road Action from the Federal Open Market Committee

August 10, 2010

The Fed did not decide to expand its balance sheet, which isn’t surprising given the political brouhaha over its sharp rise during the severe recession.  A passive decrease in the central bank asset holdings as security holdings mature is likewise not being allowed.  A third decision to fortify the quality of the balance sheet was […] More

Central Bank Watch

U.S. Vital Signs When the FOMC Met Previously

August 10, 2010

Since the June FOMC statement was released, the dollar has retreated 6.2% against the euro and 4.5% against the yen.  Ten-year Treasury yields have declined another 30 basis points to 92 bps below their level when the Federal Open Market Committee met in late April.  The Dow Jones Industrial Index is 2.8% higher than its […] More

Central Bank Watch

Bank of Japan Does Nothing New

August 10, 2010

Although talking things over for more than six hours and devoting considerable discussion to the risks of a rising yen, Japan’s central bank Policy Board in the end were more than happy not to upstage the FOMC, which releases a statement on U.S. monetary policy later today.  Bank of Japan officials Left the overnight money […] More

New Overnight Developments Abroad - Daily Update

Softer Chinese Data on FOMC Day

August 10, 2010

Stocks in Asia and Europe got walloped by Chinese data, slumping 2.9% in China, 1.5% in Hong Kong and Thailand, 1.3% in Pakistan, 1.2% in Australia, 0.9% in France, 0.8% in Indonesia and Germany, 0.5% in South Korea, Great Britain, and Spain, and 0.4% in India and Singapore.  Japan’s Nikkei only edged 0.2% lower. The […] More

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