Jonathan's Feed
Jul 17, 2014

Are markets poised for Taper Tantrum 2.0?

SAN FRANCISCO/NEW YORK (Reuters) – Investors may be ignoring subtle warnings from the Federal Reserve that a rate rise may come sooner than they think, setting the stage for another painful market contraction much like last year’s “taper tantrum.”

Catching investors off guard is the last thing U.S. central bankers want to do, which helps explain their repeated recent warnings over complacency in financial markets, and Fed Chair Janet Yellen’s pointed comments this week about banks and others building up dangerous “interest rate risk.”

Jul 7, 2014

Central banks ending era of clear promises, return to ‘artful’ policy

NEW YORK/TOKYO (Reuters) – The world’s major central banks are returning to a more opaque and artful approach to policymaking, ending a crisis-era experiment with explicit promises that they found risked their credibility and did not substitute for action.

From Washington to London to Tokyo, the global shift from transparency to flexibility underscores the challenges central bankers face as they test the limits of what monetary policy can achieve.

Jul 7, 2014

Insight – Central banks ending era of clear promises, return to ‘artful’ policy

NEW YORK/TOKYO (Reuters) – The world’s major central banks are returning to a more opaque and artful approach to policymaking, ending a crisis-era experiment with explicit promises that they found risked their credibility and did not substitute for action.

From Washington to London to Tokyo, the global shift from transparency to flexibility underscores the challenges central bankers face as they test the limits of what monetary policy can achieve.

Jun 17, 2014

Preview – Yellen, future tightening in spotlight as U.S. Fed meets

By Jonathan Spicer

(Reuters) – The U.S. Federal Reserve is widely expected to chop another $10 billion from its monthly bond purchases at a meeting on Tuesday and Wednesday but make few, if any, other concrete policy moves.

Given the lack of drama, all eyes will be focused on whether officials tip their hand on longer-term plans for interest rates.

Jun 17, 2014

Yellen, future tightening in spotlight as Fed meets

By Jonathan Spicer

(Reuters) – The U.S. Federal Reserve is widely expected to chop another $10 billion from its monthly bond purchases at a meeting on Tuesday and Wednesday but make few, if any, other concrete policy moves.

Given the lack of drama, all eyes will be focused on whether officials tip their hand on longer-term plans for interest rates.

Jun 16, 2014

Factbox: Yellen, future tightening in spotlight as U.S. Fed meets

By Jonathan Spicer

(Reuters) – The U.S. Federal Reserve is widely expected to chop another $10 billion from its monthly bond purchases at a meeting on Tuesday and Wednesday but make few, if any, other concrete policy moves.

Given the lack of drama, all eyes will be focused on whether officials tip their hand on longer-term plans for interest rates.

Jun 12, 2014
via MacroScope

The Fed’s taper and the question of the “tag-along” $5 billion

By Ann Saphir

Federal Reserve policymakers are expected next week to trim their monthly purchases of bonds by another $10 billion, putting them on track to end the massive program by October or December. So – which will it be, October or December? Some Fed officials are pushing for an answer, and soon.

“I am bothered by the fact that I don’t really know what we are going to do on that,” Narayana Kocherlakota, the dovish chief of the Minneapolis Fed, told reporters last month. “It’s another signal that we are not being as clear about our policy choices as we should be.”

Jun 11, 2014

Delay one option on Northern Gateway pipeline -Canada minister

NEW YORK, June 11 (Reuters) – The Canadian government could
technically delay an imminent decision on whether to approve the
controversial Northern Gateway pipeline from Alberta’s oil sands
to the Pacific coast, Natural Resources Minister Greg Rickford
said on Wednesday.

But Rickford’s office stressed he was not signaling a delay
was necessarily the direction the government would take.

Jun 11, 2014

Dove-hawk tradeoff could mean earlier rate rise

SAN FRANCISCO/NEW YORK (Reuters) – A possible tradeoff between opposing camps at the U.S. Federal Reserve could bring about an earlier-than-expected interest rate rise while keeping the U.S. central bank’s balance sheet larger for longer.

Comments from officials anxious to tighten monetary policy as well as from those who want it to remain as accommodative as possible suggest they may balance the timing of a rate rise against when the central bank’s massive securities portfolio should shrink.

Jun 10, 2014

Canada ‘disappointed’ Keystone XL still in limbo -Oliver

NEW YORK, June 10 (Reuters) – Canada is “disappointed” that
the proposed Keystone XL pipeline to the United States has not
yet received approval from the White House, the country’s
finance minister, Joe Oliver, said on Tuesday.

“We are of course anxious for this project to proceed and we
are very disappointed that it hasn’t yet achieved the (U.S.)
presidential approval,” Oliver told reporters before attending
an energy conference hosted by U.S. bank Goldman Sachs.