Boston Fed Prez Rosengren did a scheduled speech this afternoon. A link to the high points… https://www.bostonfed.org/news-and-events/news/top-takeaways-bard-college-talk-041917.aspx Notables: in the future, the weak economy “may necessitate more frequent use of large-scale asset purchases during recessions.” “quite likely” we’ll see more central bank QE programs in the future Fed “would take a very gradual approach to balance sheet reduction.” No obvious risk-on response from asset markets. Hmmm. […] Read the rest of this entry
Guess which market is out of touch? US Tbond: USD/JPY: and the SPX: Which market catches up to which? Spoiler alert: the equity market is always last to recognize a bubble.
At some point shortly after 3pm, President Trump said he thought the dollar was too strong… results: Zooming out… A lot of the hot air that’s been in the USD/JPY since the election is escaping. Ditto the 30yr yield…. He said “I think our dollar is getting too strong and that’s partly my fault because people have confidence […] Read the rest of this entry
Next Wednesday -April 19 2017- will be SAS day. Free access will be provided to anyone with a valid SAS email address and LinkedIn profile. Observe what the Greedometer algos are quantifying. Use the contact form to inquire.
For the 3rd time this week Bill Dudley’s comments are spiking markets: USD/JPY, USTnote/Tbond yields, and risk asset prices. Ah… free markets. A few minutes after Dudley’s comments hit the tape at 12:48pm we got this….
Yesterday saw the release of Fed minutes showing that expectations were for the Fed to begin reducing the size of its $4.5T balance sheet by the end of the year. Markets reacted immediately. So NY Fed Prez and short-killer extraordinaire Bill Dudley explained today that he saw no appreciable balance sheet reduction until mid 2018. This exercise reminds me of the Fed’s QE3 taper […] Read the rest of this entry