Moreover, the latest round of increases in energy prices has added to the upside risks to inflation and inflation expectations. The Federal Open Market Committee will strongly resist an erosion of longer-term inflation expectations, as an unanchoring of those expectations…
The unemployment rate rose from 5.0 to 5.5 in May, and nonfarm payroll employment continued to trend down (-49,000), the Bureau of Labor Statistics of the US Department of Labor reported today. – May Jobs Report, BLS If Iran continues…
[Chairman Bernanke] went today where no other Fed chairman has gone in my 20 years of doing this. He dove into the deep end of the dollar policy pool. – David Gilmore (subscription required), Foreign Exchange Analytics As we’ve discussed before,…
In collaboration with our colleagues at the Treasury, we continue to carefully monitor developments in foreign exchange markets. The challenges that our economy has faced over the past year or so have generated some downward pressures on the foreign exchange…
“… it’s an ominous sign when dollar weakness becomes ingrained enough in the popular mind for the currency to be spurned by runway models.” – “Gisele Dumps Ben” (subscription required), The Wall Street Journal, Editorial, Tuesday November 6 Last Monday,…
“We’re in the midst of a dollar crisis here and the market is reflecting on the high cost of oil and the falling dollar and soaring gold prices. The good economic news is going to be overshadowed by the dollar crisis…
Gold blasted through $800/oz on Friday to close at $808.50 on the NYMEX. That’s the highest level since January 1980 and close to the all time closing high of $825.50 set on January 21, 1980. But don’t worry about inflation…
“The accelerated decline in the dollar has been well deserved.” – Axel Merk, Portfolio Manager, Merk Hard Currency Fund Stocks are pretty much dead today. But there is some interesting action going on in currency markets. The euro has rallied another…
The stock market is certainly acting well. This morning KB Homes (KBH) announced another ugly quarter. New home sales were down 21% from last August and the median price was 7.5% lower. The S&P is up 6 points to 1531…
The gold market “is telling us that the Federal Reserve has no inflation fighting credibility.” – Ralph Preston, Account Executive, Heritage West Financial “Foreign investors would be foolish to buy US investments knowing that the value of the dollar will decline.”…