Another variable is how much
easier monetary policies in other developed countries will become.
The Fed has been a target of some conservative critics in the U.S. Congress, who say the bank risked sparking inflation with
its easy monetary policies in response to the global financial crisis.
As for Fed easings, I continue to doubt the effectiveness of
easy monetary policy in an environment where problem debt levels are unusually high and capital spending is retrenching.
We have turned more positive on most fixed income due to elevated geopolitical risks and
easy monetary policy in a low - growth world.
Not exact matches
Federal Reserve Chair Janet Yellen's willingness to risk to financial instability down the road by continuing
easy monetary policies for immediate economic gains is an «all -
in bet,» former Pimco Co-CEO Mohamed El - Erian told CNBC on Tuesday.
«Rates and inflation, even though they have ticked up, are still at very low levels relative to history,
monetary policy is still
easy, said Michael Arone, chief investment strategist at State Street Global Advisors
in Boston.
Part of the problem is the BOJ maintaining its
easy monetary policy, which erodes lending margins and yields from investments
in government bonds.
Inflation targets have been very successful at maintaining price stability because they give everyone an
easy way to understand
monetary policy and, over time, create a virtuous circle
in which realized inflation and expectations reinforce each other.
In this situation, it may be
easier to implement a tighter
monetary policy through raising rates, than it would be to implement a looser
policy using unconventional tools.
«Virtual currency is
easier to trace, allowing the central bank to monitor its velocity and the whereabouts of the money and improve its
monetary policies accordingly,» added Qian, calling digital legal tender the «jewel
in [the] crown of FinTech.»
There's a view
in some
policy circles that
easy monetary policy is good for an economy, and the more stimulus you add, the better.
Before discussing the asset price issue, again it is worth repeating that the issue is whether inflation targeting itself led to
monetary policy settings being
easier than would have been the case
in other frameworks.
When the financial crisis hit the markets
in 2008, the Federal Reserve embarked ultra
easy monetary policy, which included cutting short - term interest rates to effectively 0 % while suppressing longer term interest rates through the purchases of long term Treasury debt and mortgage - backed securities — a program informally referred to as quantitative easing.
Setting
monetary policy in the new economy is no
easy task, because the old relationship between growth and inflation seems to have broken down.
Importantly, the government's actions to mitigate risks
in the mortgage market were not seen as an impediment to
easier monetary policy.
I have been vocal
in recent months on my views on excess supply
in numerous commodities stemming from globalization,
easy monetary policies, and the ubiquity of technology.
According to Anna Stupnytska, global economist at Fidelity International, Jerome Powell's appointment as Fed chair represents
policy continuity
in the near - term and might even result
in a slightly
easier monetary stance than some other contenders for the role.
How you position your bond portfolio now will determine future results when the tide of
easy monetary policy rolls out and other economic waves start to roll
in.
With economic growth returning to the developed world, the end of years of quantitative easing and
easy monetary policy is
in view; inflation concerns are reviving, guaranteeing rising interest rates along with tightening liquidity.
Specifically, the FOMC is opting to retain its
easy monetary policies, but undertake no new initiatives at this time, Perhaps the Fed went this more conservative route
in view of the somewhat better news out on the economic front over the past few weeks, notably the generally improving housing metrics, the pickup
in June's personal income, and the surprising uptick
in the Conference Board's Consumer Confidence Index for July issued yesterday.
But it also suggests to me that we're likely to continue to have
easy monetary policy for some time to come
in the eurozone, and building on what the ECB has already done, and I'd also expect it to do more
in the future.
Both of those were certainly encouraged by
easy monetary policies, but both were also accompanied by strong expansion
in debt - financed consumer and business spending.
Global
monetary policy has been too
easy in recent years and that is why we have seen such a major run - up
in a wide range of industrial commodity prices.
«
In a referendum recession, we expect
easier monetary and fiscal
policy,» he added.
From early May to mid June, domestic bond yields followed global yields lower on concerns about potential deflationary pressures
in the US and related expectations of
easier monetary policy abroad and
in Australia.
In their efforts to add power to their
easy monetary policy stances, central banks have sought to offer «guidance» on their future behaviour.
Often referred to as «
easy monetary policy,» this description applies to many central banks since the 2008 financial crisis, as interest rates have been low and
in many cases near zero.
Instead they assert a proposition that I have not encountered
in 40 years as a professional economist — that overly
easy monetary policy reduces business investment.
And when it wants an
easier monetary policy and targets a lower federal funds rate, the Fed engages
in the opposite course of action of buying government securities so as to introduce more money into the system.
They note rightly that
monetary policy has been
easy and investment has been weak
in the current recovery.
William McChesney Martin's famous dictum that it is the job of central bankers «to take away the punch bowl just when the party gets going» is an early recognition of the need for
monetary policy to be forward looking — and perhaps a reminder that acting
in a timely fashion is not always
easy.
And when it wants an
easier monetary policy and targets a lower federal funds rate, the Fed engages
in the opposite course of action of buying government securities so as to introduce more money into the system.
Better it would be if the Fed, which is the main blower of bubbles through
easy monetary policy, would pull back on
policy when aggregate levels of debt
in the economy get above 200 % of GDP, or, would allow us to go through recessions where there is significant pain, and liquidation of bad investments.
Often referred to as «
easy monetary policy,» this description applies to many central banks since the 2008 financial crisis, as interest rates have been low and
in many cases near zero.
They help to explain why goods and services price inflation has been restrained
in the face of an exceedingly
easy monetary policy.
They got crushed
in the early - 90s by Greenspan's hyper -
easy monetary policy.
Gold is selling off as uncertainty grows about the identity and thinking of the next Fed chairman, about the efficacy of QE and about the world's tolerance to endure even the slightest tightening
in the Fed's unprecedentedly
easy monetary policy.
Developed economies will underpin the collective growth
in transactions, bolstered by
easy monetary policy and lower oil prices, while many smaller or emerging economies will show the most dramatic growth
in deal activity.