Tuesday , July 14 2020
Home / Tag Archives: Interest rates (page 34)

Tag Archives: Interest rates

Peter Schiff: Rising Interest Rates Are not Negative for Gold

In his most recent podcast, Peter Schiff made the case that the current environment of rising interest rates is actually bullish for gold.The most recent jobs report had most of the mainstream giddy with optimism. As the put it, employers added an “impressive” 222,000 jobs in June, according to the new government report released Friday. The unemployment rate ticked up slightly to 4.4%, but analysts say that was that was due to some people who had dropped out of the labor force coming...

Read More »

Why Is the Fed So Desperate to Raise Rates? Jim Rickards Explains (Video)

The June Federal Reserve rate hike wasn’t a surprise. Most analysts expected Yellen and company to boost rates by 0.25 points. The only thing that was a little surprising was the hawkish tone the central bankers took at the most recent Federal Open Market Committee meeting. The Fed is hinting it will continue to push forward with interest rate normalization and begin to shrink its balance sheet. This raises an important question. Why? As we have pointed out, the data simply doesn’t...

Read More »

Economic Data Further Eroding Fed Credibility

As we pointed out last week, the Federal Reserve finds itself stuck between a rock and a hard place. Well, data released last Friday made that squeeze even tighter.Weak employment and wages have many analysts backing off expectations for aggressive action by the Federal Reserve this year. The Fed has been talking up the economy for months to justify interest rate normalization. But the actual data tells a different story. As Peter Schiff put it in his newest podcast, the most recent weak...

Read More »

The Fed: Stuck Between a Rock and a Hard Place

The Federal Reserve basically has two paths forward.It can continue raising interest rates and risk popping the stock market bubble (among other balloons) it has inflated over the last 9 years. Or it can hold rates at the current artificially low rates and risk a currency crisis.That’s it. That’s the corner the Fed and other world central banks have backed themselves into. They’re stuck between a rock and a hard place.The cycle is pretty clear if you step back and look at it. After a...

Read More »

Fed Fail? Traders Cut Rate-Hike Bets By The Most In History Last Week

The last two weeks have seen speculators cover over $710 billion worth of Fed rate-hike bets - the biggest move in Eurodollar futures history as Trump concerns and Fed Minutes reignite lost faith in the ebullient future that sparked the creation of a record $3 trillion bet that The Fed will be right this time. Macro data has done nothing but collapse since The Fed hiked rates in March... And perhaps traders are starting to realize this is anything but 'transitory' as they covered a net...

Read More »

What Do Rate Hikes Have To Do With Crashing Libor-OIS Spreads?

One of the more perplexing moves in recent weeks has been the rapid collapse in the Libor-OIS spread, traditionally a signal of bank credit risk, which has confused many rates traders due to contradictory signal it is sending in a world in which the Fed is supposedly tightening. As we pointed out last Friday, one probable explanation for this is the gusher of bank funding availability that the world's central banks (and even more so China) has unleashed. Nowhere is that more evident than in...

Read More »

Is this Really the Scariest Chart in the World?

True Economics called it “the scariest chart in the world.”That may be a little bit of hyperbole, but a chart showing declining average rates of growth during each economic expansionary period since the 1950s is certainly cause for concern.Almost non-existent economic growth in the US during the first quarter of 2017 didn’t seem to generate much hoopla in the mainstream media. Most analysts seem to think the tepid 7% growth rate was an outlier. In fact, the Atlanta Fed’s early forecast for...

Read More »

Japan Is Dumping A Record Amount Of Foreign Bonds: Here Are The Implications

Back in February, around the time Bloomberg caught up to what we had been discussing for the past year, namely the historic dumping of US Treasurys by offshore official investors (such as central banks and reserve managers, just as the selling had in fact reversed and foreigners had resumed buying once more) we noticed that it was not China but Japan that had emerged as one of the most aggressive sellers of Treasuries following material Mark-to-Market losses on existing TSY holdings,...

Read More »

The Bank of Canada Should “Cease and Desist”

“Beneath the symbol We’ll all assemble Oh how we’ll fly Oh how we’ll tremble” — Captain Beefheart, “Ice Cream for Crow” If interest rates are the symbol beneath of which we all assemble, then there are some bad times ahead. But Canada’s “leading economists,” say interest rates are “too blunt a tool” to cool the housing market. Tomorrow the Bank of Canada will deliver a rate decision and an accompanying monetary policy report. Governor Stephen Poloz isn’t expected to raise...

Read More »

#FordSchoolYellen Q&A Post-Mortem – Janet Yellen’s Greatest Hits

Fed Chair Janet Yellen has just completed her Q&A with Twitter. She did not disappoint... The Economy...  *YELLEN: U.S. ECONOMY IS "PRETTY HEALTHY" Worst economic recovery on record... *YELLEN: WE MUST SUSTAIN PROGRESS THAT WE HAVE ACHIEVED Current Quarter GDP forecast 0.6%... *YELLEN: APPROPRIATE TO GRADUALLY RAISE FED FUNDS RATE If GDP forecasts for Q1 are correct, this will be the weakest economy since 1987 in which rates were increased. In fact this could be the lowest since Q4...

Read More »