The Great Debate

Locking up bank reserves is wrong policy focus

February 9, 2010

— John Kemp is a Reuters columnist. The views expressed are his own. —

Plotting an exit strategy and shrinking the Federal Reserve’s balance sheet has become a hot topic as policymakers try to underscore their commitment to price stability and markets ponder the risk of inflation.

Sluggish investment will hamper recovery

February 2, 2010

— John Kemp is a Reuters columnist. The views expressed are his own —

Unable to rely on the wounded consumer, the outlook for U.S. growth in the next three years depends on business investment and exports to take up the slack when stimulus programmes wind down.
Ultra-low interest rates will help. But with the economy struggling to work off a huge overhang of unused real estate assets, and not much sign of investment elsewhere, investment spending is set to remain sluggish, condemning the economy to a weak recovery in the medium term.

Fed redux: Making policy behind the curve

January 29, 2010

— John Kemp is a Reuters columnist. The opinions expressed are his own. —

With clear signs the U.S. and world economies have returned to growth, investors are trying to guess when the Federal Reserve will begin to raise interest rates again.

Banks’ exposure to the Obama Plan

January 25, 2010

President Barack Obama’s proposals to ban banks from proprietary trading unrelated to serving their customers will have a very uneven impact on the sector.

Obama bank plan is good policy, good politics

January 22, 2010

— John Kemp is a Reuters columnist. The views expressed are his own —

President Barack Obama’s proposed curbs on bank size and proprietary risk-taking will be criticised for being vague, hard to implement, and focusing on issues that were only part of the cause of the recent crisis.

Massachusetts election kills cap-and-trade

January 20, 2010

– John Kemp is a Reuters columnist. The views expressed are his own –

The Republican Party’s stunning special election victory in deep-blue Massachusetts has killed any lingering prospect of passing cap-and-trade legislation in 2010, and with it international negotiations to produce a binding climate accord before the end of the year.

Senate retirements narrow cap-trade window

January 6, 2010

— John Kemp is a Reuters columnist. The views expressed are his own —

kemp
LONDON – Yesterday’s announcement by Senator Byron Dorgan (Democrat, North Dakota) that he would not seek a fourth term in November, coupled with today’s expected announcement by Senator Chris Dodd (Democrat, Connecticut) that he won’t seek a sixth term, will remove two veterans, once secure legislators from the Democratic caucus.
It highlights the mounting problems confronting congressional Democrats facing voters in November’s midterms amid high unemployment, a relatively unpopular agenda led by the administration, and concerns about the party’s capture by special interests.

Anything but oil

December 21, 2009

kemp.jpg— John Kemp is a Reuters columnist. The views expressed are his own —

As OPEC ministers meet in Angola this week, they can congratulate themselves on a brilliant piece of market management.

Cost of cap-and-trade for U.S. households

December 18, 2009

— John Kemp is a Reuters columnist. The views expressed are his own —

How much are U.S. households prepared to pay to avert the threat of climate change? According to the latest polling data published by the Washington Post, the answer is not very much, probably not much more than $25 per month or $300 per year.

Households face power-pricing revolution

December 3, 2009

John Kemp— John Kemp is a Reuters columnist. The views expressed are his own —

Households in the United States and the United Kingdom are about to experience a revolution in the way they pay for electricity.