2018-05-13 08:33:00 Sun 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
Incoming New York Fed President John Williams suggests that it is about time to end forward guidance in order to stop holding the financial market's hand. As the current president and chief research director of San Francisco Federal Reserve Bank, Williams expects U.S. inflation to rise to the central bank's 2% target in mid-2018. This inflation expectation resonates with the key consensus that most FOMC members share in the recent central bank forum. The inflation rate can stay above the 2% target for another couple of years even as the Federal Reserve continues the current interest rate hike toward late-2019. Also, Williams shares and echoes Fed Chair Jerome Powell's recent open statement that the Federal Reserve should complete the current course of forward guidance.
In fact, economic media commentators and stock market investors should focus on economic data such as real GDP economic growth, employment, wage growth, capital investment, and industrial production etc. It is thus futile for financial market observers to read into the FOMC minutes, narratives, and word choices etc for key clues about the U.S. macro economy. The FOMC minutes and linguistic analytics can be informative to some extent, whereas, only economic data drive monetary policy decisions.
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.
2022-10-25 11:31:00 Tuesday ET
Corporate investment insights from mergers and acquisitions Relative market misvaluation between the bidder and target firms drives most waves of mergers
2020-03-12 09:32:00 Thursday ET
Google CEO Eric Schmidt and his co-authors show the innovative corporate culture and mission of the Internet search tech titan. Eric Schmidt, Jonathan Ro
2019-09-03 14:29:00 Tuesday ET
Due to U.S. tariffs and other cloudy causes of economic policy uncertainty, Apple, Nintendo, and Samsung start to consider making tech products in Vietnam i
2018-08-29 10:37:00 Wednesday ET
In an exclusive interview with Bloomberg, President Trump criticizes the World Trade Organization (WTO), proposes indexing capital gains taxes to inflation
2018-06-11 07:44:00 Monday ET
Facebook, Apple, Amazon, Netflix, and Google (FAANG) have been the motor of the S&P 500 stock market index. Several economic media commentators contend
2023-11-14 08:24:00 Tuesday ET
Thomas Sowell argues that some economic reforms inadvertently exacerbate economic disparities. Thomas Sowell (2019) Discrimination and econo