Monetary policy

Minutes of Federal Open Market Committee, November 3-4, 2009

Federal Reserve Board (Free subscription) | 11/24/2009

Minutes of Federal Open Market Committee, November 3-4, 2009

Bond Report: Treasurys up before 5-year auction, FOMC minutes

Market Watch (Free subscription) | 11/24/2009

Treasury prices make early gains as traders await minutes from the Federal Reserve’s meeting on interest rates earlier this month. The minutes are expected to confirm that the U.S. central bank sees enough weakness in pockets of the economy to leave extremely accommodative monetary-policy measures in place for a long time. An auction of $42 billion in 5-year notes is also on Tuesday's calendar....

Will the Price of Gold Soon Have a Meaningful Impact on Our Monetary Policy?

SeekingAlpha.com (Free subscription) | 11/24/2009

I was struck with Bernanke’s comment last week at the Economics Club regarding bubbles. He said: It is not obvious to me that there are any misalignments in the US financial system. Complete Story »

The Output Gap Model: Fatally Flawed

The Business Insider (Free subscription) | 11/21/2009

Could it be that the fundamental economic indicator that is gospel not only to Goldman Sachs , but to Ben Bernanke in estimating and determining monetary policy , the output gap , provides a flawed reading of the economy? As a reminder, Ben Bernanke has repeatedly expressed little regard for either commodity inflation or US dollar exchange as having an impact on overall US inflation. As Askari and...

Krugman and Mankiw spin the data the exact same way! Who would have thought the day would come?

Bluematter. (Free subscription) | 11/19/2009

Wow: For the first time ever Paul Krugman and Greg Mankiw spin the data in exactly the same way! If I had the time and inclination I’d produce a photoshoped image of the two hugging. (let’s just hope Mankiw doesn’t post a reply refuting Krugman (and himself) by showing a 'debt is too high' graph). And glad to see Krugman went one better than Mankiw (they don't hand out them nobel...

Turkey cuts key lending rate to 6.5%

Market Watch (Free subscription) | 11/19/2009

SAN FRANCISCO (MarketWatch) -- Turkey's central bank late Thursday cut its overnight lending rate by a quarter percentage point, to 6.5%, in line with economists' expectations. RBS emerging markets strategist Timothy Ash said the data flow preceeding the monetary policy meeting has continued to support the bank's "current easing bias, with limited evidence of a marked uptick in economic activity."...

Central Banks Changing Gears, Looking to Increase Gold Reserves

SeekingAlpha.com (Free subscription) | 11/19/2009

Since 1991, central banks around the world have collectively reduced their gold holdings by some ten percent. However, it now appears that attitudes are changing. Gold has been hitting new highs in recent weeks, with the US Dollar weakening under loose monetary policy, reversing the gains it made in late 2008. Investors are betting that Asia's emerging economic powers will buy more of the precious...

FOMC will release minutes of November 3-4 meeting on November 24, 2009

Federal Reserve Board (Free subscription) | 11/17/2009

FOMC will release minutes of November 3-4 meeting on November 24, 2009

Board approves reduction in maximum maturity of primary credit loans effective January 14, 2010

Federal Reserve Board (Free subscription) | 11/17/2009

Board approves reduction in maximum maturity of primary credit loans effective January 14, 2010

• Fed Will Cut Maturity of Discount Window Loans to 28 Days as Banks Recover - Bloomberg

Federal Reserve announces results of auction of $75 billion in 28-day credit held on November 16, 2009

Federal Reserve Board (Free subscription) | 11/17/2009

Federal Reserve announces results of auction of $75 billion in 28-day credit held on November 16, 2009

Is Another Israeli Rate Hike Coming Up?

SeekingAlpha.com (Free subscription) | 11/16/2009

Marc Chandler submits: The central bank of Israel hiked rates in August to become the first country to begin to normalize monetary policy during the recovery. It held rates steady in September and October, but speculation is increasing that it will hike rates again when it meets on Nov. 23. Israel reported that Q3 GDP rose a preliminary 2.2%, the most in over a year, flattered by exports and investment....

China Slams U.S. for Inflating Global Asset Prices

SeekingAlpha.com (Free subscription) | 11/16/2009

Edward Harrison submits: On the eve of U.S. President Barack Obama’s visit to China, a major Chinese official has criticized U.S. monetary policy in unusually harsh language. Liu Mingkang, China Banking Regulatory Commission chairman said the zero interest rate policy of the U.S. Federal Reserve posed a “new systemic risk.” Liu, using language reminiscent of warnings by NYU economist...

Hong Kong's Scathing Criticism of U.S. Monetary Policy

SeekingAlpha.com (Free subscription) | 11/16/2009

Edward Harrison submits: Hong Kong’s leader Donald Tsang has come out with a scathing criticism of U.S. monetary policy, comparing it to Japan’s which he believes contributed to 1997’s Asian crisis. This is the most direct and strident criticism of the U.S. Federal reserve’s monetary policy from a major international politician yet. Bloomberg reports : Complete Story »...

China Slams U.S. For Inflating Global Asset Prices Via Carry Trade

iStockAnalyst.com (Free subscription) | 11/16/2009

On the eve of U.S. President Barack Obama's visit to China, a major Chinese official has criticized U.S. monetary policy in unusually harsh language. Liu Mingkang, China Banking Regulatory Commission chairman said the zero interest rate policy of the U.S. Federal Reserve posed a "new systemic risk." [More...]

Dollar slips after China official warns of risks

Market Watch (Free subscription) | 11/16/2009

The dollar moves lower a day after China's chief banking regulator criticizes loose U.S. monetary policy as leading to increased speculation.