Federal Reserve

Marking Time Ahead of Powell Press Conference

September 22, 2021

The FOMC is expected to confirm that tapering of its bond purchase program will begin in the fourth quarter. The announcement by the Fed and release of updated economic forecasts will be made at 14:00 EDT (18:00 GMT), followed by Chairman Powell’s press conference at 14:30. Earlier today, the Bank of Japan Board wrapped up […] More

Lower Dollar Ahead of FOMC Release

June 10, 2020

The Federal Open Market Committee reviewed U.S. monetary policy yesterday and today and will release a statement at 14:00 EDT (18:00 GMT) and updated forecasts. These will be followed by Chairman Powell’s press conference at 14:30. The 0-0.25% federal funds target will not be changed, but the forecasts, which ordinarily are revised quarterly, will be […] More

Shock and Awe from the Federal Reserve Meets a Skeptical Market

March 23, 2020

A series of statements released today at 12:00 GMT and prior to the North American start of trading represent an extraordinary array of quantitative monetary stimulus (QE) that is likely to surpass the size employed during the Great Recession. The intent is forestall an evaporation of financial market liquidity, to ensure that companies otherwise sound […] More

FOMC Delivers an Unscheduled Rate Cut

March 3, 2020

The Federal Open Market Committee made an emergency 50-basis point cut of the federal funds target to 1.0-1.25%. The announcement was flashed at 15:00 GMT (10:00 local time) and was decided by a 10-0 vote. A rate reduction at the March 18th meeting had been priced into the market, and a further move then remains […] More

Bank of Canada: No Rate Change but Tighter Forward Guidance than Predicted

January 9, 2019

Canadian monetary policy remains in a tightening cycle intended to converge on rate neutrality. There have already been five 25-basis point hikes of the overnight rate target beginning in July 2017 and with follow-up moves in September 2017, then January, July and October of 2018. The big decline in the global price of oil resulted […] More

Three Shocks Slam Global Financial Markets

December 11, 2015

Stocks are plunging and the 10-year Treasury yield fell seven basis points today in response to three developments. Oil prices fell 1.2% to $36.33 per barrel. ┬áCommodities were hit by a projection from the International Energy Agency that the global oil surplus will persist for another year. China’s central bank website announced plans for the […] More

Might the Dollar Finally Be Embarking on a Substantial Uptrend?

August 6, 2014

For some time now, the potential for significant dollar appreciation against other advanced country currencies has been widely apparent based on divergent monetary policies and the greater economic vulnerability of Europe and Japan to a geopolitical landscape that’s deteriorating by the the week.  If the dollar is has begun a big move, these remain early […] More

Uneventful FOMC Meeting as Expected

April 30, 2014

A statement released after the two-day Federal Open Market Committee meeting this week reads almost identically to the prior March 19 statement.  The few changes made involved the first paragraph mostly, which deals with the committee’s view of economic conditions.  As at the three prior meetings in December, January and March, monthly purchases of mortgage-backed […] More

FOMC Plows Forward with Measured Tapering

January 29, 2014

The decision to cut monthly purchases of mortgage-backed securities and longer-term Treasury Securities by $5 billion apiece matched analyst and investor expectations exactly and brings the cumulative combined lessening of quantitative stimulus to $20 billion per month from $85 billion to a new level of $65 billion.  The $85 billion amount was introduced in September […] More

Fed Chairman Succession Timelines

July 17, 2013

It seems nearly certain that Ben Bernanke will not serve a third consecutive four-year term as Fed Chairman.  His stewardship ends on January 31, 2014. Fed Chairmen are appointed by the president, subject to senate confirmation.  Bernanke’s immediate predecessors were Paul Volcker and Alan Greenspan. The selection of Greenspan was announced by President Reagan on […] More