Tag Archives: FOMC

BFTP: The Biggest Risk At The Fed

BFTP = Blast From The Past It’s now been more than a year since this post.   We can’t take a victory lap on such nonsense but we will say, “we told you so.”   The consequences are gonna be … Continue reading

Posted in Fed, Monetary Policy, Uncategorized | Tagged , , , | 1 Comment

FOMC: Bid Adieu to QT

Just our quick take on today’s Fed. The major takeaway from today’s FOMC announcement is the end of QT in September with the cap moving down to $15 billion in the SOMA Treasury portfolio in May. The Committee intends to … Continue reading

Posted in Monetary Policy, Uncategorized | Tagged , , , | 3 Comments

The Biggest Risk At The Fed

It is FOMC day, and the committee just raised the Fed Funds rate another 25 bps. Well, actually, they increased the interest rate on excess reserves (IOER) by 25 bps to target a higher Fed Funds rate.   That is an additional … Continue reading

Posted in Fed, Monetary Policy, Uncategorized | Tagged , , , | 10 Comments

FOMC Dot Plot & Other Data – March 21

Posted in Fed, Monetary Policy, Uncategorized | Tagged , , , , | Leave a comment

FOMC: A Big Double Cheese Non-Burger

Monetary policy history made today. The  Federal Open Market Committee (FOMC)  confirmed it would begin its long-awaited quantitative tightening (QT). In October, the Committee will initiate the balance sheet normalization program described in the June 2017 Addendum to the Committee’s … Continue reading

Posted in China, Euro, Eurozone Sovereign Spreads, Fed, German Bund, Monetary Policy, Sovereign Debt | Tagged , | 2 Comments

Fed Day With Extremely Loose Financial Conditions

Today is the day,  folks. The consensus is the Fed announces the start of quantitative tightening (QT).   History in the making. Draining Liquidity Though monetary tightening officially began in December 2015,  this will be the first time the Fed drains … Continue reading

Posted in ECB, Economics, Equities, Euro, Fed, Monetary Policy, Uncategorized | Tagged , , , , | 1 Comment

Debate Within The FOMC: Bubblistas v. Efficient Marketistas?

We have finally made the time to more closely review the release of last week’s Fed minutes from the July 25-26 meeting.   We kind of like what we see. Debate Breaking Out Among FOMC Members? A debate appears to breaking … Continue reading

Posted in Equities, Interest Rates, Monetary Policy, Uncategorized | Tagged , , , , | 16 Comments

Dollar Index Spanked After FOMC – Nears Key Support

The Dollar Index was spanked today after what the market percieved as a dovish FOMC statement.    Kind of odd as early inflation indicators starting to pick up. We were expecting a short-term rally as everyone is long the euro/dollar pair, … Continue reading

Posted in Dollar, Uncategorized | Tagged , , | Leave a comment

Chart of the Day: Operation Twisted Yield Curve

Interesting chart from Bloomberg on how the Fed’s treasury holdings have changed under operation twist, or more formally, the Maturity Extension Program and Reinvestment Policy. After the end of the month no more selling of the short end to buy … Continue reading

Posted in Bonds, Chart of the Day, Economics, Monetary Policy | Tagged , , | 1 Comment


Here’s some interesting data the Fed is surely looking at. The monetary base has been flat lining since the end of QE2 —  i.e., the balance sheet growth of the Federal Reserve has not been above long-term growth.  May explain … Continue reading

Posted in Gold, Monetary Policy | Tagged , , , | 2 Comments