Both the EUR/USD and the AUS/USD have seen substantial gains following the statement from the Federal Reserve. In the statement the Federal Reserve laid out plans to hold interest rates at or near zero until late 2014. This language was more dovish than the December statement which assured the markets that interest rates would remain close to zero until mid-2013.
The FOMC interest rate and statement will be released at 11:30am CST and the Bernanke press conference will be at 1:15pm CST.
He goes on to explain that just a week before Lehman tanked and was left hung out out dry by the US Treasury (namely Paulson in no uncertain terms), which said they were going to do just that publicly
If both Russia and China, two of the top five global economies, are no longer forced to hold dollars as a means of purchasing oil, the US policy of continually pumping liquidity (printing dollars) may come home to roost in the form of hyper-inflation.
With the Swiss National Bank intervening last year and attempting to set a floor in the EUR/CHF cross at 1.20 the trading community is divided on whether or not the SNB will be successful in holding that floor.
Recently the Federal Reserve’s action to lower the interest rate on dollar denominated swaps shows that the primary goal in Washington is to continue to buy time for the Western banking system. “Kicking the can down the road” has become the strategy in Washington.
Today the world’s major central banks moved, led by the Federal Reserve, to loosen liquidity in the world’s largest banks. Effectively the Federal Reserve cut the rate at which they lend to major financial institutions by .5 percent. This move will allow European banks to raise US dollars at a reduced rate, but does it [...]
The Chinese yuan and it’s lack of appreciation could begin to attract interest in the United States.
Options are limited for state governments during a deleveraging period throughout the entire developed world. Because states do not have a central bank to manipulate monetary policy in order to stimulate consumer spending and growth, state governments are left with two basic options, cut spending or increase revenues by increasing tax rates
The Occupy Wall Street movement has to remember, no matter how tempting it may be to do otherwise, that police brutality is not the central focus. It is nothing more than a road block on the way to changing the way that Washington and Wall Street operate. The incident in Oakland where a former marine [...]