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.
2018-09-17 12:40:00 Monday ET

Nobel Laureate Robert Shiller's long-term stock market indicator points to a recent peak. His cyclically-adjusted P/E ratio (or CAPE) accounts for long-
2024-10-27 07:56:01 Sunday ET

Stock Synopsis: China Internet tech titans continue to grow amid greater competition. We launch our unique coverage of top 25 China Internet stocks. In t
2017-10-15 07:38:00 Sunday ET

Ivanka Trump and Treasury Secretary Steven Mnuchin both press the case for GOP tax legislation as economic relief for the middle-class without substantial t
2020-11-01 11:21:00 Sunday ET

Artificial intelligence continues to push boundaries for several tech titans to sustain their central disruptive innovations, competitive moats, and first-m
2018-05-11 09:37:00 Friday ET

OPEC countries have cut the global glut of oil production in recent years while the resultant oil price has surged from $30 to $78 per barrel from 2015 to 2
2017-08-13 09:36:00 Sunday ET

Several investors and billionaires such as George Soros, Warren Buffett, Carl Icahn, and Howard Marks suggest that the time may be ripe for a major financia