Markets News Regulators 

Yellen says future economic downturns likely to require further use of unconventional policy

“Yellen anticipates more QE rather than wiggle room in interest rates” reports forexlive.com. If we are indeed living in a low-neutral-rate world, a significantly less severe economic downturn than the Great Recession might be sufficient to drive short-term interest rates back to their effective lower bound.”. Even more dovish/cautious tones from Yellen but markets were closed when she made the speech so we should expect some USD-negative sentiment when Asian markets re-open. Source: forexlive.com Share This:

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Here’s how bond markets could react to the ECB next week

“In contrast, 40 billion euros per month is far more likely to require a further taper,” read the note” writes unknown author for cnbc.com. “For example, 20 billion euros per month would imply that QE could immediately end once the extension is complete.European Central Bank President Mario Draghi will return to the spotlight next Thursday with the focus firmly on how he plans to trim the bank’s asset purchase policy.Its findings, claimed to be broadly consistent with that of Reuters, suggested that the most market neutral scenarios are either an…

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What a Jerome Powell-Fed may look like

“Beyond monetary policy, Powell takes a far more laissez-faire stance on regulation than, say, Sen” writes D C for marketwatch.com. Wall Street likes Powell for his reputation of being dovish on monetary policy, at least for a Republican.Powell is now the favorite in betting markets amid published reports he’s in the lead to get Trump to nominate him. Source: marketwatch.com Share This:

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Policy Daily Review October 20, 2017

Policy Daily Review for October 20, 2017 USD Price Action Setups Ahead of ECB (EUR/USD) The U.S. Dollar saw sellers come-back ahead of a key zone of resistance; but bearish continuation remains an unclear prospect just yet. In this webinar,   EUR/USD Support Bounce, USD Drops Ahead of Pivotal ECB Meeting We are one week away from a pivotal ECB meeting in which we’re expecting to hear how the bank will ‘recalibrate’ their current QE program.   ECB’s Nowotny Says Policy Can Be Normalized Before Inflation Returns To Target The…

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John Taylor impresses Trump team for Fed chair

“Taylor’s stricter adherence to systematic rules for raising interest rates does not mesh with Trump’s view of keeping interest rates low to bolster asset prices though” writes Brian Schwartz for foxbusiness.com. He’s also known for a paper he proposed in 1993 called the “Taylor Rule,” which was a recommendation about how nominal interest rates should be determined.Taylor met with Trump last Wednesday and he’s become a favorite of Vice President Mike Pence because he believes Taylor represents “sound monetary policy,” according to sources familiar with the matter. Source: foxbusiness.com Share This:

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Wall St ends flat; late gains on Fed Powell report

“U.S. stocks closed flat on Thursday, coming back from sharp losses after the open, while Apple fell more than 2 percent to lead a decline in technology shares” reports foxbusiness.com. The S&P turned positive minutes ahead of the close after Politico reported that Federal Reserve Governor Jerome Powell is the leading candidate to become President Donald Trump’s nominee for Fed chair, in what would be a continuation of the current stock market-friendly monetary policy. (Reporting by Caroline Valetkevitch and Rodrigo Campos; Editing by Nick Zieminski).  Source: foxbusiness.com Share This:

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Policy Daily Review October 19, 2017

Policy Daily Review for October 19, 2017 EUR/USD Opening Monthly Range in Focus Ahead of ECB Meeting EUR/USD may threaten the monthly opening range ahead of the next ECB meeting on October 26 as the central bank shows a greater willingness to   ECB’s Hansson Says It’s Time To Think Of Making Policy Less Accomodative Eurozone’s strengthening economy suggest that it may be time to think of modest tightening of monetary policy, European Central Bank policymaker Ardo Hansson said in an interview published Wednesday.   Have a nice trading! Share…

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