state of the union

Sharp Response from Turkey’s Central Bank Lifts Lira

January 29, 2014

After a late-night emergency monetary policy meeting in Turkey, the overnight borrowing and lending rates were raised by 450 and 425 basis points, respectively, to 8.0% and 12.0%, while the one-week repo rate increased by 550 bps to 10.0%.  These changes far eclipsed even the boldest forecasts and initially at least boosted the Turkish lira […] More

Attention on FOMC and Davos

January 25, 2012

The annual World Economic Forum in Davos opens today with a speech from German Chancellor Merkel.  A PSI agreement between Greece and holders of its debt still hasn’t been reached.  The FOMC releases its policy statement at 17:30 GMT.  This will be followed by forecasts including the interest rate expectations of individual members, and Fed […] More

Spotlight on Fed and Other Central Banks

January 26, 2011

The Federal Open Market Committee meets today for the first of eight scheduled dates in 2011.  A statement at 19:15 GMT is not expected to modify policy. Minutes from the Bank of England’s January 12-13 meeting revealed a second dissenter in favor of raising the Bank Rate by 25 basis points and a majority somewhat […] More

Pound Depressed by British GDP Contraction

January 25, 2011

Sterling fell 1.2% overnight against the dollar, which otherwise shows gains of 0.3% against the Canadian and Australian dollars, no change versus the euro, and drops of 0.3% relative to the Chinese yuan and Swiss franc and 0.2% against the yen and kiwi. Stock prices were mixed in the Pacific Rim, with rises of 1.2% […] More

President Obama’s Challenge

January 27, 2010

Political pundits have defined tonight’s State of the Union address as a critical moment in U.S. politics.  Will voter support for what looks like a one-term presidency continue to get trimmed, or will the government be born again after an inspiring redefinition of its mission?  One learns to never say either never or always in […] More