Tag : Janet Yellen

Willingless To Take Risk infographics

Willingness to take risk and news about monetary policy

Policy normalisation makes communication particularly important, even more so when monetary policy has been very easy for a very long time and when different tools have been used to that end (policy rate at the zero lower bound or lower, quantitative easing, forward guidance).

 

The thin line between complacency and clairvoyance

Blind, complacent, cool-headed, driven by moral hazard, clairvoyant? Or should we follow the example of the Bank for International Settlements and call it “dissonant”? Which term best describes this summer’s market behaviour?

 

Meetings at the summit

In the Eurozone, China and the UK, purchasing manager indexes for the manufacturing sector declined in February. In the United States, in contrast, the manufacturing ISM rose but still held below 50, the level separating industrial expansion from contraction.

 

Fed tightening nervousness

The FOMC is meeting next week on 16 and 17 September and nervousness in markets is on the rise. US FOMC is unlikely to raise rates next week. Low inflation and a rising market uncertainty give no reason to rush the normalisation.

 
 
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