#ioer

Fragility – what the US money-market squeeze means for the future

Macro Letter – No 122 – 18-10-2019

Fragility – what the US money-market squeeze means for the future

Last month’s squeeze in overnight domestic US$ funding rattled markets

The Fed responded rapidly but the problem has been growing for some time

Market fragility stems from problems in the transmission mechanism

At the end of October the Federal Reserve are expected to announce the details of…

È stata la FED a tenere bassi i tassi d’interesse?

di George Selgin

Quando mio fratello gemello ed io eravamo bimbetti, nostro padre ci convinse che avrebbe potuto far scattare il rosso e il verde sul semaforo in qualunque momento volesse. Alzando la mano verso la luce mentre eravamo ad un incrocio, diceva: “Ti comando di diventare verde… ora!” La luce cambiava proprio al momento giusto, mentre due ragazzini gridavano: “Papà, come fai!?”

Condivid…

Lockhart hints the Fed won’t have enough info to hike in March

More comments from Lockhart: •Fed will not have a great deal more inflation data by Jan and March policy meetings to make a call on 2nd hike •Several more weeks of global turmoil may hurt economy •IOER likely a permanent Fed tool •If China turmoil and other volatility last too long it could re…

Ppi and Boj Minutes in Focus for the Jpy

The March PPI (Monday) is expected to rise +0.8% y/y (consensus: +0.4%). The domestic consumer goods component of the index, which has been sharply negative, will also be watched as its correlation with downstream prices (CPI goods prices) is strengthening. The core CPI (excluding VAT impact) will turn negative around summer, prompting another BoJ easing via additional ETF purchases and IOER cut,…

Further Qualitative Easing from the Boj Likely at the 14-15 July Meet

Japan public investment, a key economic driver under PM Abe, may now be in a long-term downtrend. Capex, a noticeable laggard, should slowly strengthen but could use support.An IOER cut would lower the BoJ’s “funding for lending” rates. This might support capex and hence growth and longer-term inflation prospects.“We now expect the BoJ to cut the IOER, in addition to buying more equity-linked…