Startled Reporter Asks Why Yellen Hiked With GDP And Real Wages Sliding: Here Is The Response
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Wall Street Vs. Main Street - Settling The Debate Over The Real Reason For QE
It's settled...
For politicians, the chart sums up the frustrations that have helped propel the populism that Brexiteers and Donald Trump rode to victory.
While wages would never show swings on par with the likes of high-yield bonds, Bloomberg notes that the chart above illustrates how well financial markets recovered from the 2007 to 2009 meltdowns. By contrast, consumer price inflation, incomes and other such gauges of the “real” economy have put in muted performances.
Austerity Kills... And Then Some
Authored by Raul Ilargi Meijer via The Automatic Earth blog,
Bank Of Japan Leaves Policy, Economic Outlook Unchanged
Confirming the expectations of all 41 economists, The Bank of Japan changed absolutely nothing about its monetary policy tonight following The Fed's 3rd rate hike in 11 years. The BOJ said in a statement that it would keep the two key rates at current levels, maintain the pace of its asset purchases, and did not change its economic outlook.
China Unexpectedly Hikes Funding Rates
Following The Fed's 3rd rate hike in 11 years, the PBOC decided, unexpectedly, to follow in the Fed's footsteps, and tighten conditions by raising the interest rates on its open-market operations, the 7-, 14-, and 28-day reverse-repos, by 10bps each, to 2.45%, 2.6% and 2.75% respectively.
That followed an increase of 10 basis points at the beginning of February, which in turn was the first increase in the 28-day contracts since 2015 and since 2013 for the other two tenors.