This from three members of the US Congress, who seem confused about the remit of a central bank:
Via a Politico report:
- Reps. Alexandria Ocasio-Cortez, Rashida Tlaib and Ayanna Pressley … called for Federal Reserve Chair Jerome Powell to be replaced
- “As news of the possible reappointment of Federal Reserve Chair Jerome Powell circulates, we urge President Biden to re-imagine a Federal Reserve focused on eliminating climate risk and advancing racial and economic justice”
Sounds great! I wonder should the Chair print more or less to hit these three added objectives though?
If Yellen was still Chair she’d know how to deal with these clowns.
Chicago Mercantile Exchange Group has lowered initial and maintenance Performance Bonds (margins) for
- COMEX 100 GOLD FUTURES (GC)
- E-MINI GOLD FUTURES (QO)
- COMEX 5000 SILVER FUTURES (SI)
- COMEX MINY SILVER FUTURES (QI)
- PLATINUM FUTURES NYMEX (PL)
and other contracts but highlighting those above here.
New bond requirements will be effective after the close of business on Friday, May 7, 2021.
29 April to 5 May inclusive (Thursday to Wednesday)
Friday 30th sneaks in, its not actually a holiday but will be taken by many.
Tokyo FX markets will be absent for the holidays with therefore reduced liquidity during the Asian timezone.
Holidays in the 4 prefectures, Tokyo and the western prefectures of Osaka, Kyoto and Hyogo, with a state of emergency will be subdued. Residents of the four prefectures have been asked to reduce outings, to a minimum and refrain from travelling outside the prefectures. Residents of other parts of the country were urged not to travel to the four prefectures.
The full statement from the FOMC September 2020 meeting
The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals.
The COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world. Economic activity and employment have picked up in recent months but remain well below their levels at the beginning of the year. Weaker demand and significantly lower oil prices are holding down consumer price inflation. Overall financial conditions have improved in recent months, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.
The path of the economy will depend significantly on the course of the virus. The ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.
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 longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer-term inflation expectations remain well anchored at 2 percent. The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved. The Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time. In addition, over coming months the Federal Reserve will increase its holdings of Treasury securities and agency mortgage-backed securities at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions, thereby supporting the flow of credit to households and businesses. (more…)
Pres. Trump on China
Pres. Trump speaking in a Labor Day news conference at the White House says
- possibility of decoupling US economy from China
- says it would not lead to monetary losses
- WTO has become much better much nicer to US
- Because of Biden, China shuttered 70,000 businesses
- China faces decoupling or massive tariffs from US
- US will prohibit federal contracts to companies that outsource to China
- Dems don’t want to make a deal because they know it is good for the economy.
- He would support prove into DeJoy/donations
- We may have a vaccine before the election
- We are doing equally as well on therapeutics
- For me, the faster the better for a vaccine
- The most important thing is saving lines
U.S. House Speaker Nancy Pelosi
- Treasury Secretary Steven Mnuchin
- White House Chief of Staff Mark Meadows
will meet again on Tuesday for further talks on the next around of coronavirus economic aid.
Pelosi said the talks Monday had been productive
The overnight (and past weeks!) USD weakness is carrying over into early Asia
Its heading towards 8.30am in Tokyo and 7.30 in Singapore and Hong Kong
Across the board USD weakness, although CAD is a laggard.
Apart from what I have been posting there is no fresh news.