The U.S. stock market, as measured by the S&P 500 index, appears to be exiting the “best era” for growth in earnings per share in decades as sources of liquidity have dried up, according to resear...
Tag: Central Bank Intervention
Asian shares rise in thin holiday trading, with U.S., European markets closed
BANGKOK (AP) — Shares rose Monday in Asia in thin post-Christmas holiday trading, with markets in Hong Kong, Sydney and several other places closed. Tokyo’s Nikkei 225 index NIK, +0.65% gained 0.6% to...
Fed’s shrinking of balance sheet via quantitative tightening is ‘a complete mistake,’ says Mizuho
The Federal Reserve’s attempt at shrinking its balance sheet through so-called quantitative tightening, or QT, is “a complete mistake,” according to Mizuho’s chief economist for the U.S. “There is a ...
Fed warns of ‘low’ market liquidity in $24 trillion Treasury market, in latest financial stability report
The Federal Reserve on Friday confirmed what many investors were saying for some time: the $24 trillion Treasury market has been experiencing low levels of market liquidity in recent months. The centr...
‘Mounting fear is that something else will break along the way’: Stock-market investors look ahead to PCE inflation data amid Fed overtightening worries
Some investors are on edge that the Federal Reserve may be overtightening monetary policy in its bid to tame hot inflation, as markets look ahead to a reading this coming week from the Fed’s preferred...
Fed may need to pivot by early November, when ‘something breaks’: Scott Minerd
With multiple cracks emerging in global financial markets, the Federal Reserve may be forced to end its aggressive rate hikes “when something breaks” and to pivot by the end of the World Series this f...
Opinion: Stock markets will drop another 40% as a severe stagflationary debt crisis hits an overleveraged global economy
NEW YORK (Project Syndicate)—For a year now, I have argued that the increase in inflation would be persistent, that its causes include not only bad policies but also negative supply shocks, and that c...
‘We are in deep trouble’: Billionaire investor Druckenmiller believes Fed’s monetary tightening will push the economy into recession in 2023
Billionaire investor Stanley Druckenmiller sees a “hard landing” for the U.S. economy by the end of 2023 as the Federal Reserve’s aggressive monetary tightening will result in a recession. “I will be...
Yen rallies after Japan unilaterally intervenes for first time in 24 years
The dollar dropped sharply against the Japanese yen on Thursday, in the first intervention to support its currency since 1998, after the Bank of Japan bucked the trend of other central banks by not hi...
Quantitative Tightening Is About to Ramp Up. What It Means for Markets.
The Federal Reserve now owns about a third of both the Treasury and mortgage-backed-securities markets as a result of its emergency asset-buying to prop up the U.S. economy during the Covid-19 pandemi...
The Other Doomsday Scenario Looming Over Markets
By James Mackintosh Sept. 3, 2022 10:00 am ET Listen to article (2 minutes) Think inflation is the biggest threat to your investments? Perhaps not: One fund manager that successfully navigated the pas...
Shrinking the Fed’s balance sheet sheet is not likely to be a benign process, new Jackson Hole study warns
“If the past repeats, the shrinking of the central bank’s balance sheet is not likely to be an entirely benign process and will require careful monitoring of the banking sector’s on-and off-balance sh...
Opinion: Stocks could drop 50%, Nouriel Roubini argues. Things will get much worse before they get better.
NEW YORK (Project Syndicate)—The global financial and economic outlook for the year ahead has soured rapidly in recent months, with policy makers, investors, and households now asking how much they sh...
The Lords of Money Pose Massive Threats to Markets
Think the Fed’s job is hard? At least the U.S. Federal Reserve can concentrate on fighting inflation. In Japan and Europe, the central banks are battling the markets, not merely price rises. That’s le...
Opinion: The Federal Reserve is shrinking its balance sheet under duress, which makes a soft landing nearly impossible
The Federal Reserve has begun to downsize its balance sheet. What does that mean for you? First, you must understand where the balance sheet’s expansion came from and why that policy was pursued. Then...
Ruble’s Rally Stumbles After Interest-Rate Cut
A rally in the Russian ruble that made it the world’s best performing major currency reversed itself for a second day Friday following an extraordinary rate cut by the country’s central bank. Russia’s...
Durability of U.S. stock- market bounce in question as inflation worries linger ahead of payrolls report
Investors took a breather this week as U.S. stocks bounced back from a weeks long selloff and the latest reading on inflation offered glimmers of optimism to those hoping for a peak in price pressures...
Fed lifts interest rates and will wind down $9 trillion bond stockpile in double-pronged attack on high U.S. inflation
“Inflation is much too high and we understand the hardship it is causing,” said Fed Chairman Jerome Powell in what he called a direct message to the American public. “We are moving expeditiously to br...
What’s next for stock market as Federal Reserve moves toward ‘peak hawkishness’
Investors will watch for another gauge of U.S. inflation in the week ahead after the stock market was rattled by the Federal Reserve ramping up its hawkish tone and suggesting large interest rate hike...
Opinion: The Fed needs to target a floor for the 10-year Treasury, in addition to radically raising the fed funds rate
Federal Reserve Chairman Jerome Powell faces the toughest task since Chairman Paul Volcker tamed the Great Inflation of the 1970s and early 1980s. And a lot of the pressures driving the most virulent ...
Opinion: Thankfully, the Fed has decided to stop digging, but it has a lot of work to do before it gets us out of hole we’re in
NEW HAVEN, Conn. (Project Syndicate)—The Federal Reserve has turned on a dime, an uncharacteristic about-face for an institution long noted for slow and deliberate shifts in monetary policy. While the...
Fed needs to ‘shock and awe’ the market with one big rate hike, Bill Ackman says
Billionaire hedge-fund manager Bill Ackman said the Federal Reserve needs to deliver old-fashioned “shock and awe” to financial markets by delivering a much larger onetime increase to benchmark intere...
Opinion: Opinion: High debts and stagflation will bring mother of all financial crises
NEW YORK (Project Syndicate)— The world economy is lurching toward an unprecedented confluence of economic, financial, and debt crises, following the explosion of deficits, borrowing, and leverage in ...