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 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!
We are 4 days away from the September Federal Reserve Interest Rate Decision, or the FOMC as it is properly known as. Fed chair Jerome Powell did cut rates by 25 basis points in August citing it was only a 'mid cycle' adjustment. He may wish he never said those words. The interest rate at which banks … Continue reading How to use Fed Fund Futures to Predict Rate Cuts.
With ECB chairman Mario Draghi stepping aside on October 31st/2019, making away for Christine Lagarde, many thought Draghi and the ECB would not announce drastic monetary decisions. Just sit on things until Lagarde takes the reins. Nope. Today, Mario Draghi announced a deposit rate cut from -0.4% to -0.5% AND announced a new stimulus bond … Continue reading ECB Cuts Rates, Back on Stimulus!