The Core Personal Consumption Expenditure (PCE) Index came in 1.9% (pg. 12, Table 11) higher for July than it was 12 months ago. That is within the Fed’s comfort zone of 1-2% – for the third consecutive month. Combine that…
In a letter from Monday released this afternoon from Fed Chief Bernanke to Senator Charles Schumer Bernanke assured the Senator that the Fed was “closely monitoring developments in financial markets” and “is prepared to act as needed to mitigate the…
On Monday we had a mid afternoon swoon as the impetus from the Fed move began to wear off. But markets recovered on news of a Tuesday morning meeting between Bernanke, Treasury Secretary Paulson and Senate Banking Committee Chairman Christopher Dodd….
When I went to bed last night around midnight PST it looked like Friday was setting up to be a bad day. Japan had crashed – down 875 points or 5.42%. Europe had opened lower and looked poised for a…
The market is acting a little schizo right now. After being down 100 or so points in the immediate aftermath of the FOMC announcement, it reversed course and at one point was up around 100 points (XLF chart). Currently, it’s…
In the statement that accompanied the Fed’s decision to hold rates steady today, Fed Chairman Ben Bernanke acknowledge the ongoing turmoil in credit markets but gave no hint that rates might be cut in response anytime in the near future….
“Markets will be hungry for any good news next Tuesday, and may take the Fed’s words the way a plain girl or guy who hasn’t had a date in months would when his telephone starts ringing.” – The Lindsey Group…
“For equities, and for the bond market in general, this may come to be viewed as merely an adjustment – a restoration of the old relationship between Treasuries and the federal funds rate – and they may be calmed by…
“Sentiment [on treasuries] has probably gotten too bearish given the current set of news.” – Tony Crescenzi (subscription required), Chief Fixed Income Strategist, Miller Tabak The sell-off the last three days has been entirely about interest rates. Higher interest strain…
“The whole story is interest rate worries.” – Stephen Carl, head trader Williams Capital (subscription required) “A lot of people are trying to come to grips with the idea that the Fed is just as likely at a future meeting,…