Central Bank Watch
Reflections on Yellen’s Press Conference
September 21, 2016
Markets reacted well. Shortly after the end of the press conference and some 95 minutes after the release of the FOMC statement and forecasts, the 10-year Treasury yield over the whole span of that time was four basis points lower than at the start of the period. U.S. share prices had risen 0.7%, and the […] More
Central Bank Watch
FOMC Statement and Forecasts
September 21, 2016
The statement elevates the risk of a coming rate hike in two ways but left the federal funds rate target at a range of 0.25 – 0.50%. A new sentence was inserted that the “Committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, […] More
Central Bank Watch
Bank of Japan Changes Policy Framework
September 21, 2016
The BOJ Board released several documents in conjunction with the unveiling of a new policy orientation that is packaged to appear like a more substantive change than it really is. The released papers include A summary of decisions made, listing of dissenting votes, and two attachments. The first of these presents the BOJ staff’s “comprehensive […] More
Deeper Analysis
FOMC Preview
September 21, 2016
Since the last FOMC statement on July 27, the dollar, share prices and the 10-year Treasury price have fallen. The Treasury yield and price of oil have climbed. Investors await the FOMC statement at 18:00 GMT today, which is to be accompanied by new forecasts and followed by a Janet Yellen press conference at 18:30 […] More
New Overnight Developments Abroad - Daily Update
First the BOJ and Now onto the Fed
September 21, 2016
The Bank of Japan Board reconfigured its monetary policy framework, switching the policy’s anchor from quantitative stimulus with a negative marginal policy deposit rate to an orientation that aims to manipulate the yield curve, making such slope upward, and to raise expected inflation through plans to overshoot the inflation target. Details of the new approach are […] More
