Federal Reserve Chairman Jerome Powell indicates that the central bank would resume Treasury purchases to avoid turmoil in money markets.

James Campbell

2019-11-09 16:38:00 Sat ET

Federal Reserve Chairman Jerome Powell indicates that the central bank would resume Treasury purchases to avoid turmoil in money markets. Powell indicates that this effort can help sustain the current economic expansion without any form of prior quantitative easing (QE) asset purchase programs. As the Federal Reserve may start expanding its balance sheet again, stock investors must not misconstrue this decision as a tactical return to QE asset purchase programs in the post-crisis economic revival. This operation helps the Federal Reserve counterbalance some major economic headwinds such as domestic liquidity constraints and greenback fluctuations.

Powell indicates the generic inclination of FOMC members toward further reducing the interest rate in November-December 2019. Several stock market analysts and economic media commentators contend that the recent Powell remarks seem to accommodate both geopolitical risks and economic woes in response to a vocal president. In this light, many stock market analysts convey the grave concern that the Federal Reserve may have fewer policy instruments left for the next economic recession as the central bank continues to trade off monetary policy independence with political demand. After all, there are no good reasons for the sudden recent reversal of monetary policy normalization.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Several recent events explain why Trump may undermine multilateral world order.

Joseph Corr

2018-06-03 07:35:00 Sunday ET

Several recent events explain why Trump may undermine multilateral world order.

Several recent events explain why Trump may undermine multilateral world order. First, Trump withdraws the U.S. from the 12-nation Trans-Pacific Partnership

+See More

CEO overconfidence and corporate performance

Laura Hermes

2022-11-05 11:32:00 Saturday ET

CEO overconfidence and corporate performance

CEO overconfidence and corporate performance Malmendier and Tate (JFE 2008, JF 2005) argue that overconfident CEOs are more likely to initiate mergers an

+See More

Stock Synopsis: High-speed 5G broadband and mobile cloud telecommunication

Charlene Vos

2024-04-02 04:45:41 Tuesday ET

Stock Synopsis: High-speed 5G broadband and mobile cloud telecommunication

Stock Synopsis: High-speed 5G broadband and mobile cloud telecommunication In the U.S. telecom industry for high-speed Internet connections and mobile cl

+See More

The Economist digs deep into the political economy of U.S. government shutdown over 3 days in January 2018.

Apple Boston

2018-01-13 08:39:00 Saturday ET

The Economist digs deep into the political economy of U.S. government shutdown over 3 days in January 2018.

The Economist digs deep into the political economy of U.S. government shutdown over 3 days in January 2018. In more than 4 years since 2014, U.S. government

+See More

Business leaders inspire teams to reach heights of both innovation and profitability with great corporate purpose.

Apple Boston

2020-08-26 10:33:00 Wednesday ET

Business leaders inspire teams to reach heights of both innovation and profitability with great corporate purpose.

Through purposeful leadership, senior managers inspire teams to reach heights of both innovation and profitability with great brand identity and customer lo

+See More

The Chinese new star board launches for tech firms to list at home.

Daphne Basel

2019-07-09 15:14:00 Tuesday ET

The Chinese new star board launches for tech firms to list at home.

The Chinese new star board launches for tech firms to list at home. The Nasdaq-equivalent new star board serves as a key avenue for Chinese tech companies t

+See More