Rewardless Risk
Submitted by Ben Hunt via Salient Partners' Epsilon Theory blog,
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US Federal Reserve
Wall Street Drops The 'C' Word: Proclaims Junk Bond Risks Are Contained
Submitted by Jeffrey Snider via Alhambra Investment Partners,
The Next Fed Chair All But Promised NIRP is Coming to the US
The Fed Vice-Chair has begun laying the groundwork for NIRP.
The US Federal Reserve is obsessed with market reactions to its policies. Because of this, anytime the Fed plans to announce a major change in policy, it preps the markets via numerous leaks and hints… oftentimes for months in advance.
An excellent example of this concerns the Fed’s decision to taper QE back in 2013.
At that time, the Fed had been engaging in two open ended-QE programs… programs that had been running for over six months.
The Flaw In The Fed Model: Recession Odds Are Far Higher Than Widely Believed
Ask the Fed what market indicators are implying about recession odds and it will tell you: about 4%. There is one problem with the Fed's model: as Deutsche Bank's Dominic Konstam shows, it is wrong due to the Fed's own intervention in the yield curve.
America, Meet Your "Apolitical" Federal Reserve
Moments after the "disestablishment" Ted Cruz (even if Goldman may have a lien or two on said disestablishmentarianism), was announced to be the winner of the Iowa Caucus, a most unexpected commentator appeared among the flood of the otherwise traditional Twitter noise with what can only be classified as the pinnacle of polarizing political commentary.