The Japanese economy is growing at less than 1 percent while annual inflation rate is hovering around a paltry 1.2 percent. The Bank of Japan wants to go all in, which explains the BoJ’s latest decision to launch an open-ended QE, said Mark Kiesel, chief investment officer of global credit at Pacific Investment Management Co. The central bank will continue …
Fed Downgrades US Economy; Stocks End Mixed
[Chart courtesy of MarketWatch.com] Domestic equity markets finished the month on a mixed note following a relatively positive statement release by the Federal Reserve affirming no changes to current monetary policy and a stronger-than-expected private sector job report from ADP. Stocks held slim gains into the afternoon when the latest policy directive from the Federal Open Market Committee sent the …
Fed Pushes Jelly Back In The Donut—SPX Rallies To New Record
[Chart courtesy of MarketWatch.com] A day after Chairman Ben Bernanke said the Federal Reserve will keep a loose monetary policy for some time to lower the unemployment rate, U.S. equity markets advanced to record highs at the close of Thursday’s session. Apparently, we must have misunderstood Bernanke’s previous remarks of tapering, as he has now successfully pushed the jelly back …
One Man’s Opinion: Does Monetary Policy Improve Structural Unemployment?
Federal Reserve Chairman Ben Bernanke has little control over US monetary policy and by using up all the traditional ammunition called the basis points by taking the Federal Funds Rate down to zero and indulging in this experimental medicine known as quantitative easing, Bernanke has pretty much abdicated control over the traction between the monetary policy and real economy, says Stephen Roach, …