2019-11-09 16:38:00 Sat ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
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.
2018-03-15 07:41:00 Thursday ET
The Trump administration's $1.5 trillion hefty tax cuts and $1 trillion infrastructure expenditures may speed up the Federal Reserve interest rate hike
2023-09-21 09:26:00 Thursday ET
Jordi Gali delves into the science of the New Keynesian monetary policy framework with economic output and inflation stabilization. Jordi Gali (2015)
2023-03-28 11:30:00 Tuesday ET
The Federal Reserve System conducts monetary policy decisions, interest rate adjustments, and inter-bank payment operations. Peter Conti-Brown (2017)
2019-07-29 11:33:00 Monday ET
Blackrock asset research director Andrew Ang shares his economic insights into fundamental factors for global asset management. As Ang indicates in an inter
2017-08-01 09:40:00 Tuesday ET
In American states, all of the Top 4 richest people are self-made billionaires: Bill Gates in Washington, Warren Buffett in Nebraska, Michael Bloomberg in N
2019-02-21 12:37:00 Thursday ET
Apple shakes up senior leadership to initiate a new transition from iPhone revenue reliance to media and software services. These changes include the key pr