Central Bank Watch
Comments on FOMC Press Conference
September 17, 2014
Three documents were released. The FOMC statement was notable for two things. Policy guidance was not changed, and there were two dissenters (Richard Fisher as well as Charles Plosser). The FOMC majority continued the assertion that it “likely will be appropriate to maintain the current target range for the federal funs rate for a considerable […] More
Central Bank Watch
Bank of Thailand Interest Rate Left Unchanged
September 17, 2014
For a fourth straight time, the Thai central bank policy interest rate was kept unchanged at 2.0%, and no adjustement seems nearby. The last one was a 25-basis point cut in March, which was the sixth such reduction since a peak of 3.5% between August 2011 and November 2011. After the latest meeting, officials released […] More
Foreign Exchange Insights and Next Week
Checklist of Economic Fundamentals Supports a Buoyant Dollar
September 17, 2014
Currency analysts approach the task of forecasting by reviewing a checklist of economic vital signs, the so-called fundamentals. Likewise, when officials complain that their currency is either too strong or too weak, the argument is based on a grading system that considers around seven comparative measures of fundamental economic performance. The ratings involve inflation, short-term […] More
New Overnight Developments Abroad - Daily Update
Awaiting FOMC Pronouncements and Some Relief from Chinese Stimulus
September 17, 2014
Markets continue to react to yesterday’s news that the People’s Bank of China is creating a standing liquidity facility for the five biggest Chinese banks totaling 500 billion yuan or roughly $81 billion. In the meantime, investors await today’s FOMC statement, updated macroeconomic forecasts and Janet Yellen’s press conference. The two first items are due […] More
