from MacroScope:

Post-Jackson Hole, Fed Septaper still appears on track

August 26, 2013

With all the QE-bashing that went on at the Federal Reserve's Jackson Hole conference this year, it was difficult not to get the sense that, barring a major economic disappointment before its September meeting, the central bank is on track to begin reducing the monthly size of its bond purchase program, or quantitative easing.

from India Insight:

Tracking Sensex: Top losers, gainers of the week

June 21, 2013

Indian shares ended in the green in three of five trading sessions but jittery market reaction to the U.S. Federal Reserve’s announcement of a gradual end to its $85 billion bond-buying stimulus took the BSE Sensex down 2.1 percent for the week. The broader 50-share Nifty lost 2.4 percent.

from Global Investing:

Show us the (Japanese) money

April 30, 2013

Where is the Japanese money? Mostly it has been heading back to home shores as we wrote here yesterday.

from MacroScope:

Beware the Bundesbank

By Mike Peacock
April 26, 2013

German newspaper Handelsblatt has got hold of a confidential Bundesbank report to Germany’s constitutional court, which sharply criticized the European Central Bank’s bond-buying plan. This could be very big or it could be nothing.

from MacroScope:

To print or not to print

By Mike Peacock
March 7, 2013

It’s ECB day and it could be a big one, not because a shift in policy is expected but because journalists will get an hour to quiz Mario Draghi on the Italy conundrum after the central bank leaves monetary policy on hold.

from MacroScope:

A flaw in euro zone defences

By Mike Peacock
February 28, 2013

Italy continues to dominate European financial markets and it looks like the best they can expect is populist Beppe Grillo supporting some measures put forward by a minority, centre-left government but refusing any sort of formal alliance. That sounds like a recipe for the sort of instability that could have investors running a mile. Outgoing technocrat prime minister Monti is speaking Brussels today. The markets’ best case was for him to support the centre-left in coalition, thereby guaranteeing continuation of economic reforms. But he just didn’t get enough votes.

from MacroScope:

Will the Fed adopt thresholds for bond buys?

January 30, 2013

Tim Ahmann contributed to this post

Suddenly top Wall Street firms are talking about the possibility that the Fed might adopt numerical thresholds for asset purchases, in the same way it has done with interest rates more broadly.

from MacroScope:

Enter the dragon

By Mike Peacock
October 24, 2012

Big day in Berlin with European Central Bank chief Mario Draghi entering the lion’s den of the Bundestag to explain to German lawmakers why his plan to buy sovereign euro zone bonds in potentially unlimited amounts poses no threat to the ECB’s remit and the euro zone economy.
Former ECB chief economist Juergen Stark – one of Draghi’s most trenchant critics – told us yesterday that the ECB president must present much more convincing arguments than hitherto as to why the plan would not pile enormous risks onto the ECB's balance sheet for which European taxpayers could have to pay.

from MacroScope:

Don’t call it a target: Fed buys wiggle room with qualitative goals

September 19, 2012

U.S. Federal Reserve Chairman Ben Bernanke listens to a question as he addresses U.S. monetary policy with reporters at the Federal Reserve in Washington September 13, 2012. REUTERS-Jonathan Ernst

In a historic shift in the way the Federal Reserve conducts monetary policy, the U.S. central bank last week announced an open-ended quantitative easing program where it has committed to continue buying assets until the country's employment outlook improves substantially. Bank of America-Merrill Lynch credit analysts captured Wall Street's reaction:

from MacroScope:

Four reasons the Fed could buy mortgages

August 7, 2012
The U.S. Federal Reserve will probably focus on buying mortgage bonds if it decides to launch a third round of quantitative easing or QE3 at its September meeting, says Columbia Management’s senior interest rate strategist Zach Pandl, until recently an economist at Goldman Sachs.
1. Since the second phase of Operation Twist just got underway, "it would be strange to announce outright purchases of Treasury securities." 2. Fed officials have publicly noted that continued purchases of long-term Treasury securities "might compromise the functioning of the Treasury market -- and undermine the intended effects of the policy." 3. San Francisco Fed President John Williams "directly advocated" mortgage purchases and Fed Vice Chair Janet Yellen has said that "beyond the Twist extension, 'it's more likely that [the FOMC] would do things that would take a different form.'" 4. "Purchases of mortgage-backed securities may be considered less controversial than Treasury bond purchases amidst the charged political environment, just prior to the presidential election."