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    Why the Fed’s New Inflation Policy Could Backfire
Sep 3, 2020 - 09:04:13 PDT
Certain often-overlooked markets may be telling us that the Fed's new policy framework is going to have some unintended consequences.
Schumer criticized a new Republican coronavirus stimulus bill expected to address unemployment insurance, small business loans and school funding.
Stocks fell sharply on Thursday as investors paused in the wake of a recent rally to all-time highs.
More U.S. corporate bonds are paying negative inflation-adjusted yields, as expectations that interest rates will stay near historic lows send investors seeking higher payouts in riskier assets.
Some euro zone countries are running unsustainable public finances as they try to cope with the coronavirus pandemic but they may still struggle to exit crisis fighting policies, European Central Bank policymaker Pierre Wunsch said on Thursday.
The interest rate that European banks use to lend among themselves plumbed new depths this week in a sign of how credit markets have been distorted by central banks’ aggressive measures this year.
Asset prices could be on the cusp of a sharp collapse known as a "Minsky moment," and may retest lows last seen in March, according to Ron William, market strategist and founder of RW Advisory.
Rapidly rising call premiums pushes volatility measures higher while surging dealer demand for stocks pushes prices higher. However, this is not a sustainable situation. And the inevitable unwinding of it could be even more volatile than anything we’ve seen so far.
    Dollar Pushes Higher; Will ECB React to Fed's Move?
Sep 3, 2020 - 07:51:33 PDT
The dollar pushed higher in early European trade Thursday, as traders trimmed bearish positions on concerns that other central banks, and the European Central Bank in particular, will look to stop their currencies appreciating too far.
The euro zone's rebound from its deepest economic downturn on record faltered in August, surveys showed on Thursday, with some countries in the bloc suffering more than others from restrictions imposed to limit the spread of the coronavirus.
An inflation rate of 2% means that the cost of living for a family making $50,000 will go up $1,000 a year. How this is supposed to “stimulate” the economy has never been adequately explained.
After frequently falling‐​short of its inflation target, the Fed now promises to make up for it by switching to average inflation targeting. Whether the new strategy does any good remains to be seen. But even if it does, by choosing AIT over NGDPLT, the Fed has missed yet another mark.
...the survey also highlights how the rebound is very uneven and the recovery path remains highly uncertain.
Goods trade fell to its lowest in at least 20 years while Services fell to the weakest since Aug 2012...
Some say that gold's purchasing power declines over time, but that's false. Gold's purchasing power is markedly stable, and out performs any other...
In 40 years house prices have gone up twenty-four times the percentage increase of salaries
Remember these numbers are completely useless since the seasonal adjustments are now completely different (and are not restated historically)
Heightened activity in options on Big Tech stocks and other names could be a contrarian warning for the stock market.
San Francisco Federal Reserve President Mary Daly on Wednesday urged more government investment in roads, bridges, digital infrastructure, education, climate resiliency and other productivity-boosting infrastructure to help pull the economy from the deep recession brought on by the coronavirus pandemic.
Look no further than emerging markets for evidence that the K-shaped recovery is taking hold. Stocks and currencies from wealthier developing nations are outperforming their poorer peers amid the coronavirus outbreak, magnifying the gap between the “haves” and “have-nots” of the global...