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.
2019-05-15 12:32:00 Wednesday ET
The May administration needs to seek a fresh fallback option for Halloween Brexit. After the House of Commons rejects Brexit proposals from the May administ
2018-08-23 11:34:00 Thursday ET
Harvard financial economist Alberto Cavallo empirically shows the recent *Amazon effect* that online retailers such as Amazon, Alibaba, and eBay etc use fas
2019-02-01 15:35:00 Friday ET
Our proprietary alpha investment model outperforms the major stock market benchmarks such as S&P 500, MSCI, Dow Jones, and Nasdaq. We implem
2017-08-25 13:36:00 Friday ET
The U.S. Treasury's June 2017 grand proposal for financial deregulation aims to remove several aspects of the Dodd-Frank Act 2010 such as annual macro s
2020-09-10 08:31:00 Thursday ET
Most business organizations should continue to create new value in order to achieve long-run success and sustainable profitability. Todd Zenger (2016)
2019-07-17 12:37:00 Wednesday ET
Gold prices surge above $1400 per ounce amid global trade tension and economic policy uncertainty. Both European Central Bank and Bank of Japan may consider