Google Analytics

Wednesday, July 10

10th Jul - US Close: Fed Minutes & Ben dovish





Previously on MoreLiver’s:

Follow ‘MoreLiver’ on Twitter or Facebook

Roundups & Commentary
Markets – Between The Hedges
The Closer – alphaville / FT
US: Bonds And Stocks Disagree On FOMC Taper As Oil And Gasoline Surge – ZH

EUROPE
Analysis: Euro zone's queasy feeling as it looks in Japan mirrorReuters
Monetary policy that cannot get traction; weak banks that cannot or will not lend; an economy trapped in a twilight world of low growth, haunted by the specter of deflation.

UNITED STATES
  FOMC MINUTES for meeting of June 18-19, 2013
PreviewZH
We already know from Chairman Bernanke that the majority of the FOMC plans to hold MBS to maturity instead of selling; any additional clarifications to the June 2011 Exit Strategy Principles would be noteworthy.

Half The Fed Said It Would Be Appropriate To End QE "Late This Year"ZH

Key Passages WSJ

MinutesCalculated Risk
"Many members indicated that further improvement in the outlook for the labor market would be required before it would be appropriate to slow the pace of asset purchases". We will probably know more on the Fed's plans after Bernanke's speech and Q&A later today.

Minutes alphaville / FT
The minutes make the point that some of those participants encouraging the announcement of a tapering did so out of a belief that the recovery would strengthen considerably. In other words, if it doesn’t accelerate, then the tapering would be pushed back, but the point is that it is contingent on upcoming data.

Market As Confused As Fed (But Fades Rally)ZH

Even The Experts Throw Up All Over The Fed MinutesZH

Many on Fed Awaiting More Job Gains Before Tapering QEBB

Fed wants more job gains before slowing bond buys: minutesReuters
Even as consensus built within the Federal Reserve in June about the likely need to begin pulling back on economic stimulus measures soon, many officials wanted more reassurance the employment recovery was on solid ground before a policy retreat.

BERNANKE’S SPEECH
A Century of U.S. Central Banking: Goals, Frameworks, AccountabilityFED
Chairman Ben S. Bernanke at the "The First 100 Years of the Federal Reserve: The Policy Record, Lessons Learned, and Prospects for the Future," a conference sponsored by the National Bureau of Economic Research, Cambridge, Massachusetts

Gold, Bonds, And Stocks Soar As Bernanke Promises MoarZH

Bernanke says Fed ready to push back if financial conditions tighten too farReuters
Bernanke said on Wednesday that the U.S. central bank might have to "push back" if financial conditions tightened so much as to threaten the economy's progress.

Bernanke hopes greater transparency at Fed will be a legacyReuters
Eyeing the end of his term as chairman of the U.S. Federal Reserve, Ben Bernanke said on Wednesday that he hopes his commitment to making what the central bank does more transparent will be one of his legacies.

Bernanke says highly accommodative policy needed for nowReuters
Even as consensus built within the Federal Reserve in June about the likely need to begin pulling back on economic stimulus measures soon, many officials wanted more reassurance the employment recovery was on solid ground before a policy retreat.

ASIA
Why you should worry about ChinaTradingFloor
Mads Koefoed: China has warned of a grim outlook for trade after a surprise fall in exports and imports. Saxo Bank's Mads Koefoed says there is now a lot of pressure on the country's government to come up with some kind of fiscal stimulus.

China’s Very Real Slowdown, Out in the OpenWSJ
China’s economy is slowing down. China reported that both exports and imports fell in June, something that hadn’t happened since October 2009 during the depths of the global recession.

The third arrow’s lofty aim: the cases for and against optimismalphaville / FT
From a recommended Credit Suisse strategist note, first a reminder of what’s in Shinzo Abe’s ‘Third Arrow’ for rescuing the Japanese economy:

OTHER
US is slowing not accelerating; Italy - the real risk in Europe?TradingFloor
Steen Jakobsen: The US economy is too weak to create 2.5 percent growth this year and if anything growth will disappoint. What is the Macro consensus call and why do I disagree? Finally, maybe Italy and not Portugal is the real sick man of Europe!