Central Bank Watch
Comments on Fed Chairman Powell’s Press Conference
September 16, 2020
The fact that two dissents were cast against the forward guidance did not get raised in Q&A until late in the press conference and elicited an unconcerned response from the chairman, who observed 1) that the dissents represented opposite sides of the policy spectrum, 2) that all committee members were in favor of a restructured […] More
Deeper Analysis
FOMC Statement and Updated Forecasts
September 16, 2020
I had two quick takeaways from today’s FOMC statement. First, Under the modified FOMC framework for treating its twin policy mandates, forward guidance is expressed in an enlarged paragraph: The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With inflation running persistently below this longerrun […] More
Central Bank Watch
FOMC Preview
September 16, 2020
This week’s review of Fed policy is not expected change its settings for interest rates or unconventional stimulus such as asset purchases. This was the last scheduled meeting before the November election. To avoid appearing partisan, the central bank avoids, if at all possible, policy changes this close to a presidential election but as in […] More
New Overnight Developments Abroad - Daily Update
And the Dollar Downbeat Goes On
September 16, 2020
FOMC Day in America finds the dollar struggling to tread water. The U.S. currency slipped further to a 16-month low against the Chinese yuan and a 7-week low relative to the yen and is hovering near a 5-year low against the Swiss franc and a 2-1/2 year low against the euro. Overnight losses in the […] More
