That said, the fundamental picture continues to argue for higher volatility on the back of a maturing global cycle and the higher uncertainty
about central bank policy that comes with it.
CNBC's Kelly Evans sits down with billionaire investor Paul Singer of Elliott Management to talk
about central bank policy, interest rates and gold.
Not exact matches
Central -
bank «speak» is always closely followed for hints
about the future course of monetary
policy.
The euro, which has been knocked by weaker - than - expected economic data and growing doubts
about when the European
Central Bank will normalize its monetary
policy, fell 0.67 percent against the greenback to $ 1.998.
In its
policy statement, the
central bank noted that «uncertainty
about the future of NAFTA is weighing increasingly on the outlook.»
The common currency rose to a two - and - half year high against the dollar on doubts over the U.S. currency but also after European
Central Bank President Mario Draghi gave two speeches last week with no indications about the bank's next steps for monetary pol
Bank President Mario Draghi gave two speeches last week with no indications
about the
bank's next steps for monetary pol
bank's next steps for monetary
policy.
Monetary
policy and fiscal
policy were out of sync, and there apparently was nothing the
central bank governor felt he could say
about it.
Growing doubts
about when the European
Central Bank will normalize its monetary
policy has hurt the euro against the dollar in recent weeks.
It also was a rhetorical one: most
central banks, including the the
Bank of Canada, resort to explicit statements
about their
policy intentions only in the case of an emergency.
Deutsche Bundesbank President Jens Weidmann speaks
about the
policy focus for the European
Central Bank.
HSBC European Economist Fabio Balboni speaks
about the European
Central Bank's potential
policy moves at today's governing council meeting.
NEW YORK Swedish
central bank Governor Stefan Ingves talks
about economy and monetary
policy - 1730 GMT.
STOCKHOLM Swedish
central bank Deputy Governor Per Jansson talks
about economy and monetary
policy 1030 GMT.
Gold bugs like Sprott have long warned
about the impact of inflation,
central bank policy measures and government spending on the value of fiat national currencies.
If Yellen's Fed fails to convince Wall Street
about the
policy path, a rate increase could trigger financial turmoil of the sort seen in 2013, when investors were caught off guard by the
central bank signaling an end to its bond - buying program.
After weakening at the start of 2018, a rise in U.S. Treasury yields have helped the dollar stage a recovery in the past fortnight at the same time as doubts grow
about when the European
Central Bank (ECB) will tighten monetary
policy.
UBS Chairman Axel Weber speaks
about sentiment in markets and monetary
policy from major
central banks.
His tenure as Fed vice-chair coincided with the period in which the U.S.
central bank was more cautious — likely too cautious —
about toying with unorthodox tools such as asset - buying
policies.
Several factors
about the
central bank's revised monetary
policy are worth noting, as their effects will play out over the year.
With the global economy «floating on an ocean of credit,» the current acceleration of credit via
central bank policies will likely produce a positive rate of real economic growth this year for most developed countries, PIMCO chief Bill Gross writes in his latest monthly commentary, but «the structural distortions brought
about by zero bound interest rates will limit that growth and induce serious risks in future years.»
While the government's
policies have remained opaque, officials with the Russian
Central Bank have talked
about blocking the access of people inside the country to virtual currency websites, and Mr. Putin has pointed out the many potential illegal uses of the technology.
Asked
about the move to reveal the rate cut discussion only after the rate decision was released, a spokeswoman for the
central bank said Poloz's open statement to reporters is designed to fill the gap between the quarterly monetary
policy report and press release announcing the rate decision.
Many investors have been surprised at the complacency in the markets given geopolitical risks (North Korea, for example), domestic political risks (tax reform, trade war, etc.) and
central banks in the U.S., Europe and China either removing, or talking
about removing, monetary -
policy accommodation.
By conducting
policy in a transparent way and communicating what is important in determining the
central bank's reaction function, I think policymakers can strike the best balance between a monetary
policy that fully incorporates the complexity of the world as it is, while, at the same time, retaining considerable clarity
about how the FOMC is likely to respond to changing circumstances.
Hector Valdez Albizu, Governor,
Central Bank of Dominican Republic, spoke with Global Finance magazine editor Andrea Fiano
about the country's fiscal and monetary
policies, relations with the IMF and the road ahead for Dominican Republic's economy.
He is also concerned
about what happens when the Fed ends its bond - buying program, citing the need for more clarity on the
central bank's exit
policy.
The debate prior to this crisis can be (perhaps simplistically) characterised as between those who argued that an inflation - targeting
central bank should care
about asset prices to the extent that they affected the forecasts of output and inflation over the
policy horizon, and those who argued that additional attention needed to be paid to asset prices and the possibility of credit imbalances.
The U.S. media are silent
about the most important topic
policy makers are discussing here (and I suspect in Asia too): how to protect their countries from three inter-related dynamics: (1) the surplus dollars pouring into the rest of the world for yet further financial speculation and corporate takeovers; (2) the fact that
central banks are obliged to recycle these dollar inflows to buy U.S. Treasury bonds to finance the federal U.S. budget...
This allowed the European
Central Bank to start talking
about tapering its Quantitative Easing, and inertia in Washington dashed hopes of progrowth fiscal
policy.
But investors and policymakers will comb over the Fed's
policy statement for clues
about whether the
central bank plans to raise rates more quickly than previously telegraphed.
I merely wish to record that from
about the middle of 1999, markets around the world began to recognise that the accommodative stance of monetary
policy by major
central banks that had been so appropriate for 1998 and early 1999 was starting to look less appropriate as 1999 progressed and strengthened.
The
central bank made a concerted effort starting late last year to divorce its «forward guidance» on interest rates, what it tells markets
about the expected future path of
policy, from specific calendar dates.
While the United States has been embroiled in pre-presidential election drama and speculation
about what might trigger the Federal Reserve to raise interest rates, the United Kingdom voted to leave the European Union and multiple
central banks worldwide turned to a negative interest - rate
policy in an attempt to stimulate growth.
Juwai.com Vice President Byron Burley speaks to Greg Bonnel of BNN on House Money
about Chinese property investor interest in Canada following tougher foreign buyer taxes, as well as
policy changes by the Chinese government and
central bank.
Also, with talks
about Serbia being included in the European Union, the dinar's exchange rate with other major currencies will likely be affected by monetary
policies from the European
Central Bank.
In portraying Bill Niskanen as a monetary
policy radical, I've limited myself to his views on the Fed and
central banking more generally, without venturing to consider what he had to say
about other financial regulatory agencies.
As far as the actual momentary
policies are concerned, the
central bank left everything unchanged today, while the head of the
bank signaled that he is confident
about growth in the Euro - zone, sparking initial buying in the common currency.
Many are now talking
about whether the
central banks will change their
policies on quantitative easing.
Going For Gold China's
central bank, which has expressed ongoing concerns
about the performance of the U.S. dollar, suggested that «the need to perfect foreign - exchange
policies in the gold market is clear.»
Yet this isn't the first time in the present campaign that the Conservatives themselves have trespassed on traditional
Bank of Canada terrain. On July 22 Joe Oliver publicly rejected the use of quantitative easing in Canada (the unconventional credit - expanding strategy that has been used successfully in the US, the UK, and now Europe) despite dimming economic projections here. Decisions
about the use of QE should, in theory, be the purview of the
central bank. Several economists publicly questioned Oliver's statement, noting that it throws into question the
Bank's future decisions on monetary
policy.
Some would argue that by acting cautiously on balance sheet normalization (without actively countering impacts of ECB
policy measures), Fed policymakers have partially ceded control of financial conditions to foreign monetary authorities, but the same can be said
about other
central banks as well, for long - term rates are correlated among advanced economies:
I have talked
about this at length elsewhere, and I am sure that informed people are well acquainted with the current monetary
policy regime in Australia, which is based on an inflation target, an independent
central bank and a floating exchange rate.
Nevertheless, the apparent success of the ECB's
policy in overcoming the threat of deflation increased speculation
about a potential tightening of monetary
policy, possibly even before the cessation of the
central bank's bond purchases — scheduled to continue for at least the rest of the year — and in the wake of the ECB meeting pushed market estimates of the odds of a rise in official interest rates before the end of 2017 to more than 50 %.
And what's important there is, first, that the bubble is identified by a set of experts — a set of
policy makers who are focused on this issues — and, secondly, once the recommendations are made it's a broader political decision, not just the
central banking making the decision; it's a broader decision made by
policy makers and legislators
about what to do
about the problem.
So you do talk
about that the war on cash and also I would say it ties into negative interest rate
policy because with the abolishing of cash it would allow
central banks to more easily implement monetary
policy especially if it goes into negative interest rates.
Although eurozone data have improved, we feel speculation
about an impending
policy shift by the European
Central Bank (ECB) is overdone.
Though the US yield curve remained some way from inversion — which historically is often cited as signaling an impending recession — investors were relatively sanguine
about the significance of its flattening, with many arguing that low long - term yields were more reflective of
central -
bank policies and the weak inflationary environment than dimmer economic prospects.
We went from «Don't fight the FEDs, don't fight
Central Banks» to «who cares
about Central Banks» because everything is fine in the economy and there is disbelief that we're making the transition from a reliance on monetary
policy to the benefits of a fiscal
policy and synchronized growth.
Last week,
policy makers at the
central bank, the People's Bank of China (PBOC), tinkered with the currency without providing much indication to the market about its endgame — one factor in the China market selloff that spurred a global stock r
bank, the People's
Bank of China (PBOC), tinkered with the currency without providing much indication to the market about its endgame — one factor in the China market selloff that spurred a global stock r
Bank of China (PBOC), tinkered with the currency without providing much indication to the market
about its endgame — one factor in the China market selloff that spurred a global stock rout.
Global equity markets have more than doubled from 2008 - 2009 financial crisis lows, but with concerns
about China, credit,
central bank policies, currencies and commodities all piling up, where do we go from here?