Global Macro Perspectives
I try to post diverse opinions (too much Marc Faber lately), but this video is so fun, especially seeing CNBC hosts so shocked with Marc Faber views that they lose the ability to ask any kind of questions.
The wording on strength of economic recovery is upgraded (“economic recovery is on a firmer footing”). Some improvement in labor market recognized.
Energy and commodities rising prices effect on inflation downplayed.
FED pre-announcement via. WSJ…
Did not have time to review this yesterday… Most important – economic projections were raised up. Theme remains unchanged: inflate.
New: Formulation that despite rise in commodity prices longer-term inflation expectations have remained stable and; Since Mr. Hoenig in no longer a voting member all FOMC members voted in favor of FOMC monetary policy action.
Nothing exciting and new upon first (skim)reading.
Literally nothing new here.
The bond sell-off was much hyped across the media and various commentators have provided various explanations. From my point of view all of the reason’s given don’t make much sense. So, we’ll have to wait and see if something meaningful comes along.
I’ll only repeat the famous phrase ” Don’t fight the FED”, especially taking into account that they (FED) have proved that they are capable of doing everything needed to achieve their goals.
In the last months global economic outlook has improved a bit. In U.S. we can see signs of personal consumption and manufacturing activity growing at soft rates, but growing; at the same time employment, housing, construction spending, durable goods orders are stagnating. Fall in initial jobless claims is clearly being offset by inflow of people into the workforce; job creation still weak.
Summary: Economy is barely expanding at a sustainable pace; Will print more money if needed.
Only thing interesting are revisions to the committee’s forecasts for growth, unemployment, and inflation in the next three years.
U.S. consumer price index rose 0.2% in October vs. 0.3% consensus and September reading of 0.1%. On year level CPI inflation is running at 1.2%…
And the view from the man himself. The Washington Post: What the Fed did and why: supporting the recovery and sustaining price stability. By Ben S. Bernanke Thursday, November 4, 2010 Two years have passed since the worst financial crisis since the 1930s dealt a body blow to the world economy. Working with policymakers at […]
This is the best QE2 analysis out-there. FT Blogs Post: QE2 is about asset prices, not the economy
$600 million over 8 months. More than consensus, but less what was expected before WSJ story. The pace of asset buying on lower bound of expectations. FED Press Release. Slow recovery confirmed. Core inflation measures moved lower. Information received since the Federal Open Market Committee met in September confirms that the pace of recovery in […]