Archive for August 29th, 2016

Central Bank Watch

Bank of Israel

August 29, 2016

Israel’s last central bank interest rate change occurred in February 2015. A 15-basis point cut then to 0.10% culminated 325 basis points of easing that had begun during 2011. This month’s statement from the bank of Israel notes that market-implied measures do not anticipate a rate hike before 2018, and the opportunity is not taken […] More

Deeper Analysis

Factors for the Fed to Consider

August 29, 2016

When the first and so far only federal funds hike of the current cycle was implemented last December, U.S. real GDP had only risen 0.9% at an annualized rate between the summer and autumn quarters. At the start of some previous tightening cycles, U.S. real GDP had advanced much more quickly than 0.9%, to wit […] More

New Overnight Developments Abroad - Daily Update

Continuing Reaction to the Fed’s Message from Jackson Hole

August 29, 2016

Investors are much more inclined to think a federal funds rate hike likely next month than before the slew of comments made at the Jackson Hole conference. In reaction, stocks and commodities are lower, and the dollar is mostly firmer. Dollar overnight gains amount to 0.3% against the yen, 0.2% versus sterling and the yuan […] More