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by Phoenix Capital Research
A month ago, we noted that the Fed was becoming increasingly splintered about how to proceed with its monetary policy. At that time we noted that the latest FOMC minutes indicated that the Fed was in fact conflicted about QE 4 despite its public appearance of being unified: Consider its recent FOMC minutes released on January 3 2013. With regard to the possible costs and risks of purchases, a [...] Reality Check Charles Evans is the president of the privately owned Federal Reserve Bank of Chicago. On January 14, he gave a speech in Hong Kong. As with all speeches by Federal Reserve Bank officers, except for Bernanke the Boring, he was careful to say that his views were only his own. “Before I begin, let me say that the views I express here are my own and do not [...] Global economy: Central bankers gone wild Let’s start with the US Federal Reserve, which did something that it’s never done before: It tied its actions to actual, concrete numbers in the economy. The Fed said it would keep stimulating the weak US economy until the nation’s unemployment rate fell to 6.5 percent (it’s now at 7.7 percent). It will also keep interest rates historically low as long as inflation in the US [...] While we already posted the Chicago Fed President Charles Evans’ CNBC interview this morningin the gold and silver update, Evans’ comments are so shocking that they deserve their own post. Evans explains the Fed’s dual mandate: keep unemployment low, and ensure inflation targets Wiemar Republic levels. In his latest update, Greg Mannarino discusses Fed Presidents Charles Evans and John Williams’ speeches this week calling for FURTHER quantitative easing. Williams stated the Fed can extend Operation Twist into infinity (which can only occur if the Fed goes out and PURCHASES T-BONDS DIRECTLY!!). Mannarino states we are in the middle of an escalating GLOBAL CURRENCY WAR. The petro-dollar is being threatened as China is colluding with the Saudi’s to bring the [...] Charles Evans, President of the Federal Reserve Bank of Chicago, proposed in a speech today that the Fed adopt a monetary policy that is tied to specific economic data points. Specifically, he called for the Fed to not raise the federal funds rate until the U.S. unemployment rate falls below 7%. “Knowing that rates would stay low until significant progress is made in reducing unemployment would reassure markets and the public [...] by Phoenix Capital Research
Listen up Mainstream Financial Media, the Fed is not going to announce QE 3. You’ve been running the same tired stupid story after every single FOMC meeting since May 2011, desperately trying to spin everything the Fed says into a call for more QE.
The fact of the matter is that only a handful of Fed members have called for more QE. They are Charles Evans and Bill Dudley, [...] From Bloomberg: Federal Reserve Bank of Chicago President Charles Evans urged easier monetary policy around the world, including in China, to guard against economic shocks, broadening his call for more stimulus in the U.S. “I don’t need to see any more data to know that I think we should have more accommodation,” Evans said to reporters today in Beijing, referring to the U.S. “I certainly would applaud anybody who takes action in order to strengthen their [...] theatlantic.com
Chicago Federal Reserve president Charles Evans doesn’t look the part of a heretic. But in the cozy, conservative club that is central banking, he certainly qualifies. While most of his colleagues at the Fed have recently taken an even more hawkish turn, Evans remains a champion of additional monetary stimulus. And on Tuesday he took an even bigger step: He became the first sitting Fed member to endorse nominal GDP (NGDP) level targeting. Sounds [...] From CNBC: Two Federal Reserve officials warned Tuesday that the U.S. could be heading for a “fiscal cliff” at year’s end if mandated tax increases and spending cuts are implemented. Charles Evans of the Chicago Fed called the cliff a “big uncertainty” while Atlanta Fed President Dennis Lockhart said there could be a “financial shock” if markets begin to anticipate that Congress and the White House do little to address this situation. The [...] By Graham Summers Starting back in August, I began suggesting that we were approaching a Systemic Crisis/ Crash scenario in the markets. The technical and fundamentals both supported this forecast, but I completely underestimated the degree to which the Central Banks and EU would attempt to prop up the market. At that time, I thought it likely we’d see a Crash, which would then be met with another round of stimulus, which would [...] by Phoenix Capital Research
The markets will likely try to rally this week based on the following items:
End of quarter performance gaming
#1 is a regular phenomenon in the markets and needs not be explained. #2 is closely tied in with the latest policy [...] This just broke on Marketwatch Fed should not take foot off gas: Evans WASHINGTON (MarketWatch) — The Federal Reserve should take more steps to boost demand, the president of the Chicago Federal Reserve Bank said on Thursday as he continued his campaign for looser policy. In an interview with reporters at his headquarters in downtown Chicago, Charles Evans said his preferred next easing step would be for the Fed to keep rates at [...] Federal Reserve officials are probably engineering a third round of large-scale asset purchases, while they are unlikely to announce a decision today, according to economists in a Bloomberg News survey. Sixty-nine percent of those surveyed say Chairman Ben S. Bernanke will embark on a third round of quantitative easing, or QE3, with a plurality of 36 percent predicting the move in the first quarter of next year, according to the poll of [...] By: Antonia van de Velde The U.S. economic outlook has “clearly” deteriorated this year, and the continued softness of economic indicators shows that the headwinds facing the country are even stronger than thought, Chicago Federal Reserve President Charles Evans said on Wednesday. “Conditions still aren’t much different from an economy still in recession ,” Evans, speaking at a seminar in London [...] By: Jeff Cox Ben Bernanke still has plenty of tools left in his belt—the problem is whether any of them has a sharp enough edge and enough force to make a difference. AP As Wall Street parses the message the Federal Reserve chairman sent in his speech Friday from Jackson Hole, the narrative that has taken hold includes, on one level or another, more action to help boost the markets [...] Federal Reserve officials are in no hurry to respond to recent indications U.S. economic growth has hit another soft patch, despite chatter in financial markets that the Fed might start a new program of U.S. Treasury-bond purchases to boost growth. The central bank has already purchased more than $2 trillion of mortgage and Treasury bonds. The purchases are meant to hold interest rates down by reducing [...] by Saxplayer00o1 1) PBOC: ‘Stop printing money‘ “BEIJING – AN ADVISER to China’s central bank on Monday issued a thinly veiled warning to the United States not to print more money to stimulate growth, as IMF and top central bank officials met in Shanghai. Xia Bin, a member of the monetary policy committee of the People’s Bank of China (PBOC), also said a key task to strengthen the global [...] Published October 05, 2010 NEW YORK (Reuters) – The U.S. Federal Reserve should do “much more” monetary easing to spur a sluggish economic recovery, a top Fed official said in an interview published Tuesday. “In the last several months I’ve stared at our unemployment forecast and come to the conclusion that it’s just not coming down nearly as quickly as it should,” Chicago Federal Reserve Bank President Charles Evans told the [...] Positive gross domestic product readings and other mildly hopeful signs are masking an ugly truth: The US economy is in a 1930s-style Depression, Gluskin Sheff economist David Rosenberg said Tuesday. Writing in his daily briefing to investors, Rosenberg said the Great Depression also had its high points, with a series of positive GDP reports and sharp stock market gains. But then as now, those signs of recovery were unsustainable and only provided [...] The US economy is in a 1930s-style Depression, Gluskin Sheff economist David Rosenberg said Tuesday. Writing in his daily briefing to investors, Rosenberg said the Great Depression also had its high points, with a series of positive GDP reports and sharp stock market gains. But then as now, those signs of recovery were unsustainable and only provided a false sense of stability, said Rosenberg. Rosenberg calls current economic conditions “a depression, and not [...] Positive gross domestic product readings and other mildly hopeful signs are masking an ugly truth: The US economy is in a 1930s-style Depression, Gluskin Sheff economist David Rosenberg said Tuesday. Writing in his daily briefing to investors, Rosenberg said the Great Depression also had its high points, with a series of positive GDP reports and sharp stock market gains. But then as now, those signs of recovery were unsustainable and only provided [...] Seems some of the Fed governors are having second thoughts about any further stimulation. From the MW article under this headline: WASHINGTON (MarketWatch) — Charles Evans, the president of the Chicago Federal Reserve Bank, said Wednesday he was wary of calls for the Fed to buy more assets to stimulate the economy. “There are limits to what policy can do,” Evans said. http://www.marketwatch.com/story/us-stocks-up-slightly-as-private-sector-jobs-disappoint-2010-06-30 That comment, while not a majority vote, may indicate unwillingness to further [...] Wha!? So Tim Geithner spoke with Bloomberg TV’s Al Hunt. It hasn’t aired yet, but headlines, courtesy of Kid Dynamite, are coming out. This one is really weird: BN 16:00 GEITHNER SAYS EU DEBT CRISIS UNLIKELY TO HURT US ECONOMY Seriously? A potentially contagious debt situation and a strengthening US dollar won’t hurt us? We can hope, but as Kid Dynamite notes, this could be Hank Paulson’s “subprime is contained†quote [...] |
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