Archive for economy – Page 2

Fed likely to begin reversing crisis-era stimulus next month, meeting notes suggest

Honestly, we’re not betting on this one.  And even if so, 25 basis points is not significant.  (Except what it will cost regarding government debt service.)

Federal Reserve officials are prepared to begin reversing the central bank’s major crisis-era stimulus measures next month, notes from their July meeting published Wednesday suggest. At the July 25-26 meeting, several Fed members were prepared to begin shrinking the central bank’s balance sheet, the new minutes from the meeting revealed. Most preferred to defer the decision until a later meeting. While the group was […]

Bill Gross compares Fed policy to an umpire who died on the field

A note from Bill Gross, portfolio manager at Janus Henderson, would hardly be complete without a wild anecdote. His July investment outlook published on Thursday was no different. Gross again criticized the Federal Reserve’s decisions to recover the economy from the Great Recession. This time, he compared the Fed’s bond-buying program to John McSherry, a Major League Baseball umpire who suffered […]

European Central Bank sticks to easy money pledge despite better growth

Once again the central bankers talk out of both sides of their mouth.  Mario says one thing, spooks the markets and then unwinds his statement and he is once again the brilliant hero for the markets to applaud. Are you nervous yet?

FRANKFURT (REUTERS) – The European Central Bank left its ultra easy monetary policy stance unchanged as expected on Thursday (July 20), keeping rates at record lows and even leaving the door open to more asset buys if the outlook worsens.

But the prospect of reduced monetary stimulus has kept financial markets edgy, with investors nervously sifting through clues to gauge how big central banks around the globe will unwind unconventional policy that have kept borrowing costs at rock bottom.

The biggest headache for the ECB is the apparent disconnect between inflation and growth. Having bought trillions of euros worth of government and corporate debt for years, the ECB has rekindle growth and the euro zone is creating jobs faster than expected.