Last week’s FOMC meeting went as expected but the press conference actually provided some solid questions as the media put some pressure on Chair Jerome Powell. NPR actually received an answer to what TRANSITORY means to the Fed chair: Prices will stay but the process of inflation will stop or slow dramatically. Hmm, the continued use of the LUMBER and AUTO markets did not reflect that definition at all. It seemed that the authorities were pursuing the concept of roll back.
Posts Tagged ‘Swiss National Bank’
Notes From Underground: The Fed As G-30 Proxy?
August 1, 2021Notes From Underground: The Darkness of Foreign Exchange
December 10, 2020There were two central bank meetings in the past two days: The Bank of Canada and the European Central Bank. The BOC stayed its current course with no change in policy. Several analysts were looking for more dovish action because of the appreciation of the Canadian dollar but the BOC was wise in noting that a “broad-based decline” in the U.S. exchange rate has contributed to a “further appreciation of the Canadian dollar.” As a result, the BOC has ZERO concerns about its currency appreciating as long as it is BROAD-BASED.
Notes From Underground: Euthanize the Rentiers
December 22, 2019As we head into the global macro uncertainty of 2020, equity markets continue to elevate due to central bank liquidity additions. One year ago, U.S. equities suffered large losses, which some attributed to the FED firing its DOUBLE SHOTGUN of interest rate increases with QUANTITATIVE TIGHTENING (Druckenmiller/Boockvar).
Notes From Underground: In a 70th Anniversary Redo, I SAY NUTS to Global Financial Markets
December 21, 2014First, as the clouds of sadness begin to lift I want to thank all of those who took time to send a note to the blog and to me in emails for the condolences on the passing of my mentor and friend. In a tribute to one of the great traders, the markets provided volatility reminiscent of a 21 gun salute, or maybe just 21% vol levels and a VIX to go with it.
Notes From Underground: Rumors Abound but they are not a mystery to me
August 19, 2010There are a number of rumors making the markets uneasy. First, there is an array of whispers about meetings in Tokyo in which the MOF and BOJ are going to weigh some type of intervention to curb the rise in the YEN. We have no idea how this would be accomplished, but think it could be through large selling of YEN into the market. However, with the failure of the SWISS National Bank’s efforts, we doubt that the Japanese would do anything so simple.