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Forbes (July 9)

2018/ 07/ 11 by jd in Global News

“Investors seem willing to bet that the near-term winner of the trade war is Trump. However, the detrimental effects of an escalating trade war are being considered by central bankers here and in Europe. The negative impact mainly comes from a worsening in business sentiment and corporate investment.”


Bloomberg (August 19)

2014/ 08/ 20 by jd in Global News

The annual meeting of central bankers kicks off this week in Jackson Hole and it’s worth paying attention. “Central bankers, a group of largely independent technocrats, wield more power over the fates of politicians, investors and regular folk than ever before. In the absence of government action, they are bearing most of the burden of supporting economic recoveries in the U.S. and Europe. With their bond purchases and other unconventional policies, they have become a major force holding up financial markets around the world.”


Financial Times (October 8)

2012/ 10/ 09 by jd in Global News

“The Federal Reserve’s new round of quantitative easing may stall the dollar’s long term appreciation but it will not reverse it.” The dollar is being driven higher by four fundamentals: 1). The growing U.S. economy 2). The safe-haven status of U.S. bond markets 3). The shale gas revolution reducing U.S. dependence on imported energy 4). The determination of other central bankers not to let their national currencies appreciate. QE3 merely “presents headwinds to the dollar’s favourable fundamentals.”


The Economist (October 6)

2012/ 10/ 07 by jd in Global News

“For investors around the world, the recovery seems assured. The MSCI global share index has risen almost 10% since July. The credit for this largely goes to central bankers.” This is not, however, a time for overconfidence. “As long as politicians in the world’s big three economies continue to dither, another global recession is possible.”


Institutional Investor (September 5)

2012/ 09/ 07 by jd in Global News

GDP targeting may be “the real message from Jackson Hole.” At this annual meeting of central bankers a paper presented by Michael Woodford advocated GDP targeting. “The Fed has already promised to keep rates low through 2014, but if it were to switch gears, it would instead promise to keep rates low indefinitely, until nominal GDP, or GDP adjusted for inflation, was showing clear signs of a recovery.”