Archives of “American English” tag

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Some members of US Congress want Fed Chair Powell sacked

  
  Analysis
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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.
This from three members of the US Congress, who seem confused about the remit of a central bank:

Futures – The CME has lowered margins for gold, silver, platinum

  
  Analysis
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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.

Japan’s Golden Week holidays begin Thursday

  
  Analysis
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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.

Fed’s Powell. Vaccinations, monetary policy and fiscal policy creates brighter outlook

  
  Analysis
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Feds Powell on IMF panel

  • Vaccinations, monetary policy and fiscal policy are creating a brighter outlook in the US
  • Wants to see a string of months like March jobs report
  • unevenness in recovery is a serious issue
  • global vaccination is a risk to progress we are making
  • There is a risk in the US if cases move back up from here. Any pickup and cases will slow the recovery

US President Biden says he will not be telling the Federal Reserve what to do

  
  Analysis
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US President Biden says he has not spoken with Fed Chair Powell

  • “I’m not going to do the kinds of things that have been done in the last administration, either talking to AG…or the Fed telling them what they should and shouldn’t do”
  • “The Federal Reserve is an independent operation.”
The end of an era …   🙁
US President Biden says he has not spoken with Fed Chair Powell

The FOMC statement from the September 2020

  
  Analysis
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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: He is thinking about decoupling from China

  
  Analysis
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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

Pelosi confirms US coronavirus economic rescue package talks to continue Tuesday

  
  Analysis
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  • 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

USD weakening further into Asia morning FX trade

  
Analysis, Forex
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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.

The full statement of the FOMC rate decision for July 2020

  
  Analysis
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FOMC Rate statement for July 2020

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 coronavirus outbreak is causing tremendous human and economic hardship across the United States and around the world. Following sharp declines, economic activity and employment have picked up somewhat 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 weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term. In light of these developments, the Committee decided to maintain the target range for the federal funds rate at 0 to 1/4 percent. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.

The Committee will continue to monitor the implications of incoming information for the economic outlook, including information related to public health, as well as global developments and muted inflation pressures, and will use its tools and act as appropriate to support the economy. In determining the timing and size of future adjustments to the stance of monetary policy, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.

To support the flow of credit to households and businesses, over coming months the Federal Reserve will increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace to sustain smooth market functioning, thereby fostering effective transmission of monetary policy to broader financial conditions. In addition, the Open Market Desk will continue to offer large-scale overnight and term repurchase agreement operations. The Committee will closely monitor developments and is prepared to adjust its plans as appropriate.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Patrick Harker; Robert S. Kaplan; Neel Kashkari; Loretta J. Mester; and Randal K. Quarles.

Implementation Note issued July 29, 2020

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