Larry's Blog
Famous Anniversary Today in Fed History
October 6, 2009
Thirty years ago, October 6th fell on a Saturday, not a typical day of the week for the Fed to be announcing important policy changes. Paul Volcker had been Chairman of the Board just two months, and CPI inflation as of September had risen to 12.2% from 8.3% a year earlier and 5.5% two years […] More
Aussie Rate Hike Just The Beginning
October 6, 2009
The 25-basis point hike in the Reserve Bank’s cash rate to 3.25% is first increase since March 2008 and ends a streak of six cuts between September 2008 and April 2009 totaling 425 basis points. That very sharp rate decline to a 49-year low braced for what officials expected to be “a serious economic contraction […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Stocks Up But Dollar and Sterling Down
October 6, 2009
The Reserve Bank of Australia became the first G-20 central bank to raise interest rates, lifting its cash rate from a 49-year low of 3.0% to 3.25%. Most analysts had assumed such a move would occur 1 or 2 months later than now. I saw even odds of such happening. The British Independent ran a […] More
