Repo has been the talk of the town lately, and the Federal Reserve has so far downplayed the issue at hand. Fed chair Jerome Powell did mention this problem in his last FOMC press conference, but again told journalists and viewers that this is not quantitative easing (QE). Repo and QE both inject money into … Continue reading Repo Madness Continues!
If you follow my work, you know how the Bond market is crucial to my analysis. It is the largest market in the world, and we are heading to a period where central banks really have no ammunition anymore and are using rhetoric to maintain confidence in the system. The history of humanity is cycles … Continue reading Bond Market Indicating Risk On Environment?
Last week the market (and the world) was on the edge of their seats awaiting any news on the US-China trade talks. It first was reported that the talks led nowhere, and the Chinese were going to leave a day early. And then on Friday, President Trump announced that the two countries have entered “phase … Continue reading Trade War Enters “Phase 1”?
Things are escalating very quickly. If you follow my work here, or on my other blog (unchartedfx.com) or even follow my stories on social media ( https://www.instagram.com/unchartedfx/), I have been warning about this. I have been saying interest rates are going to ), perhaps even negative AND central banks are going back to stimulus. People … Continue reading Federal Reserve Announces QE…But please don’t call it QE.
If you were following the markets on Friday, things seemed well. Markets were moving up, the yen crosses were moving up. Likely a typical Friday before the week ends. And then it came. Markets dropped significantly, and the Yen appreciated. Many traders in chat rooms were wondering what had happened. Well, it came out that … Continue reading US Considers Capital Controls in Trade War with China!
If you follow my work, I have outlined since the beginning of the year how central banks are out of tools. They will revert back to cutting interest rates back to 0 (deeper into the negative for Europe and Japan...Britain may follow since they are at 0.5% currently). Central banks will also revert back to … Continue reading Federal Reserve becoming the BUYER of last resort!
The Fed cut rates by 25 basis points this week citing global uncertainty and for targeting inflation. Jerome Powell probably wishes he never mentioned the last cut being a "mid cycle adjustment" as it seems now the Fed does not know what they will do next. A pragmatic approach. However, they know they will be … Continue reading The Fed Rate Cut was NOT the biggest Fed news this week!