The part I found most interesting is where the FOMC thought it was important for us have the Fisher equation spelled out in detail - "With short-term nominal interest rates constrained by the zero bound, a decline in short-term inflation expectations increases short...
For the bulk of the FOMC voting members, the act of easing monetary policy from current levels involves outright buying of longer dated Treasury securities with the explicit intent to lower longer term bond yields. As Vice Chairman Dudley stated in his seminal October...
Welcome to the world of the Bernanke put. In the end the data ex government/census noise looks decent with private payrolls on the same trend at 80k/mth or so. But headline seems to be the focus for govvies which now have to anticipate the Fed buying 6 yards a day...
There are many news stories floating around on the Fed's near certain restart of a Treasury LSAP program in November. You have some commentators suggesting that tea party candidates want to reign in Fed intervention in the Treasury market. The idea is that the Fed is...
Private payrolls miss by almost 50k and the spoo is flat on the day at 5 month highs!!! Anyone that does not believe in the Bernanke Put needs to rethink the situation. The only issue that confounds the full throttle reflation trade is implementation. At present, the...
Private payrolls miss by almost 50k and the spoo is flat on the day at 5 month highs!!! Anyone that does not believe in the Bernanke Put needs to rethink the situation. The only issue that confounds the full throttle reflation trade is implementation. At present, the current FOMC believes that buying long dated Treasuries […]
