Dillon AL 22:50 GMT July 16, 2014
Yellen
Ambrose is a very accomplished economist and journo. He is no ones mouthpiece
GVI Forex john 21:41 GMT July 16, 2014
Calendar -- Daily Forex Data News
Reply
July 16, 2014 (global-view.com) UPCOMING DATA HIGHLIGHTS for Thursday, July 17.
Updated: Trading News Events Calendar
HIGH IMPACT NEWS RELEASES: EZ- HICP (CPI), US- Housing Starts & Permits, Philly Fed
- Far East: No Major Data.
- Europe: EZ- HICP (CPI),
- North America: US- Weekly Jobless, Housing Starts & Permits, Philly Fed, Natural Gas.
dc CB 20:52 GMT July 16, 2014
Is it safe? Anthrax, Smallpox, aaaaaannnnnd
Reply
WASHINGTON — The same federal scientist who uncovered forgotten vials of smallpox earlier this month also found over 300 undocumented vials at the same lab, according to the Food and Drug Administration.
FDA officials say the vials list the names of other contagious viruses and bacteria, including dengue, influenza and rickettsia. Previously the government only announced it had recovered six glass vials of smallpox dating from the 1950s.
The freeze-dried smallpox samples were found in a building at the National Institutes of Health in Bethesda, Maryland, that has been used by the Food and Drug Administration since 1972.
The find was disturbing because for decades after smallpox was declared eradicated in 1980, world health authorities said the only known samples left were safely stored in super-secure laboratories in Atlanta and in Russia.
300 Vials Labeled Influenza, Dengue Found at Lab
dc CB 20:37 GMT July 16, 2014
Yellen
5 Years ago, President Obama explained to the American public that "profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal" much to the chagrin of CPAs everywhere, stuck looking under every rock and cranny just what a profit and earning ratio was...............
Today, none other than Janet Yellen created yet another imaginary metric to reassure the stock-buying-public that all is well as follows: "price equity ratios and other measures are not outside of historical norms." While she admits "some things may be on the high side," ......................
The problem - aside from WTF is a "price-equity ratio" is that P/E ratios are actually higher now than they were at peak of the bubble...
Janet Yellen Opens Mouth, Epic "Valuation" Fiasco Ensues
sd sf 19:28 GMT July 16, 2014
update
Reply
eurusd book - it closed all positions over last few hours .. I guess it has seen it is bottom of range - no current orders outstanding.
gbpusd - some offers at 50 + 65 with stops above high
can't tell much from chart looks like noodle soup atm.
eur/cad - bids at 20 22 24
gold it is trading 90-08
Asia : after yesterday's hammering in the NZD - I wouldn't be surprised we don't see more of the same - hard to imagine 1 days selling is everything to be seen...yesterday the highs in nzd and lows in audnzd was in this 6am - 7.30 am window syd time... looking to buy 40-50 for 80-90 in the X.
PAR 18:16 GMT July 16, 2014
Yellen
Some Top Money Managers Push for Fed to Start Raising Interest Rates
By ALEXANDRA STEVENSON and MATTHEW GOLDSTEIN
July 16, 2014 1:55 pm
http://dealbook.nytimes.com/2014/07/16/some-top-money-managers-push-for-fed-to-start-raising-interest-rates/?hp&action=click&pgtype=Homepage&module=second-column-region®ion=top-news&WT.nav=top-news
PAR 18:12 GMT July 16, 2014
Yellen
Reply
Moving Markets
Should Janet Yellen Be Giving Us Stock Picks?
JULY 16, 2014
LINK
GVI Forex 18:04 GMT July 16, 2014
Fed Beige Book
Reply
Fed says Labor Market Conditions are Improving in All twelve Districts and that Economic Growth is Moderate to Modest. It noted that Economic Activity Expanded in All Regions.
PAR 17:21 GMT July 16, 2014
Portugal -Espirito Santo
When a stock drops from 100 to 1 and then rises to 1.19 ,
thats a 19% rise .
Some people seem to believe portugese central bankers and goverments official who say there are no problems .
Mtl JP 17:01 GMT July 16, 2014
Portugal -Espirito Santo
PAR how do you essplain a 19.74% jump in ESPIRITO SANTO caramba ?
GVI Forex john 16:39 GMT July 16, 2014
Agree or Disagree? EURUSD
Reply
This is a new chart we introduced about a week ago and we continue to refine it. It shows the EZ Refi rate, 2-yr bond yield. We have overlaid the EURUSD to the chart.
Notice how the EZ (German) 2-yr has fallen recently to 2-3bps. At this level it puts pressure on the ECB to ease further, and also puts downward pressure on the EURUSD which finally has broken in the last 24 hours. At current levels (grey line), it seems finally to have adjusted to where it "should" be. I don't necessarily feel that it is at a floor here. The purpose of the chart is not to predict levels, more it should be used to highlight INEVITABLE pressures. In this regard, I believe it works.
Comments welcome
london red 15:42 GMT July 16, 2014
eurgbp
Reply
some profit take in pair now back to 7900. intraday suggests a dip here. if not and 7907 retaken can rally further on profit taking. this one has come a long way and while the trend is still clearly down long term, you have to watch for snap backs as its a crowded trade.
GVI Forex 15:37 GMT July 16, 2014
BOC's Poloz
Reply
BOC's Poloz: "Now Our Thought Process Depends on the Data Flow"
GVI Forex john 15:22 GMT July 16, 2014
Risk On/Off Heat Map
Markets have moved into a mixed risk-on posture Wednesday .
We are noting the gains in shares as a primary risk
indicator. On the other hand, bond yields have been falling. We are
noting the ease in EURUSD.
- Yields in prime Eurozone fixed income
markets are mostly lower on the day. Yields
on the European
periphery are lower. The German 10-yr bund is
1.19%, -2bp.
- The U.K.10-yr gilt yield is
2.65% 0bp.Most still see a +25bp BOE rate hike by
yearend. UK wage growth released today were soft.
- U.S.10-yr yield is 2.54%, -1bp.
- Equities closed mixed in the
Far East. Bourses in Europe are up strongly. U.S. shares are stronger.
The heat map color scheme
of interest rates reflects yields. This aligns all the colors in the
chart to reflect risk-on (green) and risk-off(red).
london red 15:14 GMT July 16, 2014
Fed Chair Yellen
seems some comments re sustainability have helped knock down the 10 year again. but yield needs need to press through session high to get dollar rolling again
jkt abel 15:02 GMT July 16, 2014
Sell cable
good trade mks alimin, for now i think 1.7150 and above could be too much
SaaR KaL 15:00 GMT July 16, 2014
Day's Trades
if a rally Starts Into next...and into the month
I think 1.42 is next tgt
for next quarter
GVI Forex 14:57 GMT July 16, 2014
Fed Chair Yellen
Reply
Yellen: Fed Will Evaluate How Far We Are From Objectives in Rate Decisions
Yellen: Fed Has Not Laid Out Specific Timeline for Raising Interest Rates
SaaR KaL 14:49 GMT July 16, 2014
Day's Trades
will short
eurnzd
1.5605 1.5152
1.5661 1.5095
1.5684 1.5073
1.5707 1.5050
1.5718 1.5039
maybe next day
Mks alimin 14:45 GMT July 16, 2014
Sell cable
Reply
Sell GBPUSD
Entry: Target: Stop:
Sold 1.7144, stop 1.7177
SaaR KaL 14:44 GMT July 16, 2014
Day's Trades
USDCHF next Week's range
0.8946 0.8794
AUDUSD
0.9533 0.9334
USDCAD
1.0733 1.0515
SaaR KaL 14:39 GMT July 16, 2014
Day's Trades
NZDJPY on rally north mode
Silver will blow up north
Central Kwun 14:28 GMT July 16, 2014
Sell Gold
Reply
Sell Gold
Entry: 1299 Target: Stop:
no speech from yellen?
london red 14:15 GMT July 16, 2014
yellen
Reply
q&a up soon, possibly bond market waiting for session over before next move as tried to rally but dipped again with yields now towards low for session. think need to see 2.58/59 taken to release dollar vs yen euro and possibly sterling as well (in that order)
london red 14:08 GMT July 16, 2014
July 2014 Bank of Canada Policy Decision
BoC dismisses inflation blip, so does this mean fridays inflation is less than forecast or is it another opportunity for volatility?
either way, loonie heading on its way to 200 day ma now with res at 10831/40 after that. short term over bought, but after the BoC statement its probably going to squeeze slowly higher until the next piece of data.
SaaR KaL 14:07 GMT July 16, 2014
Day's Trades
CADJPY
Adding Longs
96.1710 94.4682
96.3838 94.2553
96.4690 94.1702
96.5541 94.0850
96.5967 94.0425
GVI Forex john 14:03 GMT July 16, 2014
July 2014 Bank of Canada Policy Decision
Key statement by BOC
"...The Bank is neutral with respect to the timing and direction of the next change to the policy rate, which will depend on how new information influences the outlook and assessment of risks."
SaaR KaL 14:03 GMT July 16, 2014
Day's Trades
USDCAD adding shoet
1.0770 1.0548
1.0797 1.0521
1.0808 1.0510
1.0819 1.0499
1.0825 1.0493
GVI Forex john 13:54 GMT July 16, 2014
Risk On/Off Heat Map
I indicated earlier that it looks like today has been shaping up to be a RISK-ON session. Equities rallied early in NY but I don't know if they have the wherewithal to sustain those gains.
We are assuming Yellen will be a non-event today. The Senate (yesterday) tends to ask better questions than House Members (today).
GVI Forex Blog 13:49 GMT July 16, 2014
Reply
July 16, 2014 (global-view.com) UPCOMING DATA HIGHLIGHTS for Thursday, July 17. Updated: Trading News Events Calendar
HIGH IMPACT NEWS RELEASES: EZ- HICP (CPI), US- Housing Starts & Permits, Philly Fed
GVI Forex Data Outlook for July 17, 2014
GVI Forex john 13:47 GMT July 16, 2014
Calendar -- Daily Forex Data News
Reply
July 16, 2014 (global-view.com) UPCOMING DATA HIGHLIGHTS for Thursday, July 17.
Updated: Trading News Events Calendar
HIGH IMPACT NEWS RELEASES: EZ- HICP (CPI), US- Housing Starts & Permits, Philly Fed
- Far East: No Major Data.
- Europe: EZ- HICP (CPI),
- North America: US- Weekly Jobless, Housing Starts & Permits, Philly Fed, Natural Gas.
SaaR KaL 13:45 GMT July 16, 2014
Day's Trades
AUDNZD
Shorts
1.0771 1.0489
1.0806 1.0454
1.0820 1.0440
1.0834 1.0426
1.0842 1.0419
EURGBP Closing soon 0.7850
Short From 0.7970
SaaR KaL 13:34 GMT July 16, 2014
Day's Trades
EURJPY
Longs
139.6825 137.3479
139.9743 137.0560
140.0910 136.9393
140.2078 136.8226
140.2661 136.7642
london red 13:31 GMT July 16, 2014
afternoon thoughts
Reply
euro. 13535 has traded during each of the last 5 hourly bars which have had lower high in all. however 10 year rebound just slightly scuppering momentum to downside in euro. 2 year trendline comes in at 12 and then recent low at 03, these must be targets if we move away from 35 to the downside. not certain there is enough to take the market lower on a closing basis however. but is 135 goes you expect 13475 and below there momentum players will sell the break.
cable. now back above rising hourly trendline (low of current hour) and if can close above there/40 suggests buy the trendline makes sense again despite the weaker wages today. does need to go above 73/80 to bring 17203 back in target but hard to see how it can break higher with no more uk data this week and with a just slightly hawkish yellen. its going to take something on the dollar side to allow a push through 17203.
loonie. BoC meet up soon. on one side higher inflation, other side weaker jobs. todays data came in stronger and only creates more problems for BoC who would probably like to remain to the dovish side. suggestions of a revisit to 200 day ma or even 10831 fib on a repeat of the dovish stance of before.
SaaR KaL 13:31 GMT July 16, 2014
Day's Trades
USDCHF
Shorts
0.8974 0.8822
0.8993 0.8803
0.9000 0.8795
0.9008 0.8787
0.9012 0.8784
CHFJPY
Longs
115.2902 113.0660
115.5682 112.7880
115.6794 112.6768
115.7906 112.5656
115.8462 112.5099
SaaR KaL 13:27 GMT July 16, 2014
Day's Trades
Long EURUSD adding
1.3530
1.3506
1.3496
1.3486
1.3481
Paris ib 13:16 GMT July 16, 2014
May 2014 U.S. TIC flows
"Taking into account transactions in both foreign and U.S. securities, net foreign purchases of long-term securities were $19.4 billion. After including adjustments, such as estimates of unrecorded principal payments to foreigners on U.S. asset-backed securities, overall net foreign acquisitions of long-term securities are estimated to have been $9.0 billion in May.
Foreign residents decreased their holdings of U.S. Treasury bills by $4.9 billion. Foreign resident holdings of all dollar-denominated short-term U.S. securities and other custody liabilities increased by $0.5 billion." 12 month rolling saw an outflow of -163.3 billion USD in long term U.S. securities by foreign residents.
This data confirms what the U.S. Current Account data already shows: capital inflows have become outflows.
TIC data
dc CB 12:56 GMT July 16, 2014
Yellen
Bank of America said on Wednesday that its second-quarter profit plunged 43 percent, dragged down by a large legal expense that overshadowed some otherwise positive results.
Bank of America’s $4 billion legal expense in the quarter wiped out a substantial amount of its profit.
Bank of America’s Earnings Decline 43% on Legal Costs
london red 12:33 GMT July 16, 2014
June 2014 U.S. PPI
soft ppi, doesnt suggest cpi higher nearterm. euro has its own problems but usdjpy not going far on this data. still selling blips while below 102.20
dc CB 12:01 GMT July 16, 2014
Yellen
What all the news outlets ignored in yesterday's hearing.
The Question that Yellen danced around to run out the clock.
Warren v Yellen clip
PAR 11:54 GMT July 16, 2014
Portugal -Espirito Santo
Reply
Portugal's bank woes just got more complicated
Matt Clinch - @mattclinch81
The saga surrounding troubled Portuguese lender Banco Espirito Santo (BES) took another twist on Wednesday, with the fortunes of a telecoms merger shedding more light on the strength of the country's banking sector.
Portugal Telecom rushed Wednesday to salvage a possible tie-up with Oi, the Brazilian telecoms company, after a possible default by Rioforte, an investment unit of the Espirito Santo group, called the deal into question.
http://www.cnbc.com/id/101840250
London London 11:34 GMT July 16, 2014
Buy signals
Reply
Buy GBPUSD
Entry: 1.171222 Target: 1.7820 Stop: 1.71170
New signal.
Posted with permission of global-view.com
paid forex signals
PAR 11:24 GMT July 16, 2014
Yellen
Reply
Yellen the new Wallstreet analyst for biotech stocks and social media stocks . Where does she gets her research ?
sd sf 11:23 GMT July 16, 2014
Global Markets News
the one thing with Yellen I suppose - is everyone expects her to go overboard with dovish talk
today with the USD gaining a little bit of strength .. maybe she could slip up somewhere and make it kind of interesting.
I know that would be similar in probability as me climbing everest tomorrow .. but we can only hope for Vol to drift a little higher.
GVI Forex john 11:18 GMT July 16, 2014
EUR Heat Map
Reply
EUR-based Heat Map. Forex from a EUR point of view. EUR mostly lower on the day. Spot to 20-day averages are mostly negative, except vs. AUD.
SaaR KaL 11:06 GMT July 16, 2014
Day's Trades
SIlver Next week
23.0494 21.3008
gold
1,390.5743 1,311.7383
what are you waiting for? Stalin?
SaaR KaL 11:03 GMT July 16, 2014
Day's Trades
Cable Next week range
1.7452 1.7163
eurusd
1.3754 1.3556
Mtl JP 10:35 GMT July 16, 2014
Global Markets News
baltic dry index, at 782 down another 2+%
http://www.bloomberg.com/quote/BDIY:IND
PAR 10:13 GMT July 16, 2014
CHINA
Reply
Better than expected Chinese growth , better than expected results from the financial instititutions ( benefitting from zero rates ) and finally Yellen repeating the zero interest rate mantra are turbo boosting world stockmarkets .
Yellen just keeps refilling the punch bowl . Santé.
london red 09:59 GMT July 16, 2014
Agree or Disagree? EURUSD
35 the key level for me. below there 11 and 03 beckons. otherwise risk of higher to (from here) 48 then 75 and 90.
Mtl JP 09:57 GMT July 16, 2014
Don't Fight the Central Banks
http://www.c-span.org/video/?c4503655/warren-jpmorgan (approx 7 mins long)
-
Warren: "Has JPMorgan ever gotten to a plan, which you can say with a straight face, is credible?"
Yellen: "I've understood this to be a process, these are extremely complex documents to produce. In our second round of submission, we're looking at plans that run into tens of thousands of pages."
Warren: "I think the language in the [Dodd-Frank] statute is pretty clear. That you are required, that the Fed is required to call it every year onwhether these institutions have a credible plan. And I remind you, there are very effective tools that you can use if those plans are not credible. Including, forcing these financial institutions to simplify their structure, or forcing them to liquidate some of their assets. In other words, break them up."
-
grandma - from her October 9, 2013 statement - sees the FED with three mandates:
The mandate of the Federal Reserve is
1) to serve all the American people,
2) help ensure that everyone has the opportunity to work hard and build a better life. We can ensure that inflation remains in check and doesn't undermine the benefits of a growing economy.
3) We can and must safeguard the financial system
--
SaaR KaL 09:07 GMT July 16, 2014
Day's Trades
aapl
calls above 102 are dead till June/2015
97.5 to 99.2 will buy puts
strike 95 Aug/2014 exp
GVI Forex john 09:01 GMT July 16, 2014
Risk On/Off Heat Map
Reply
Markets
apper to be moving nto a mi;d risk-on posture early in Europe today .
We are most focused on the gains in shares as our primary risk
indicator. Traders will get a second round of Yellen testimony later.
- Yields in prime Eurozone fixed income
markets are roughly steady on the day. Yields
on the European
periphery are lower. The German 10-yr bund is
1.21%, 0bp.
- The U.K.10-yr gilt yield is
2.64% -1bp. Odds favor a +25bp BOE rate hike by
yearend. The focus today has been soft UK wage growth.
- U.S.10-yr yield is 2.54%, -1bp.
- Equities closed mixed in the
Far East. Bourses in Europe are higher. U.S. share futures are better.
The heat map color scheme
of interest rates reflects yields. This aligns all the colors in the
chart to reflect risk-on (green) and risk-off(red).
HK [email protected] 08:57 GMT July 16, 2014
NZD since Y.day.
Reply
Bad news are bad news + Good news are also bad news= Prolonged downward pressure:(
london red 08:56 GMT July 16, 2014
May/June 2014 U.K. Employment Data
same situation as US, plenty of jobs being gained but all of the lower quality.
cable. below 20 opens up 7100/90 where the should be some support. if not we are going to 17064 again.
london red 08:48 GMT July 16, 2014
May/June 2014 U.K. Employment Data
hourly close below 30 spells trouble for cable and risk of another profit taking. needs to retake 50 to thwart bears and ideally close above 70/80 on the hour.
GVI Forex john 08:40 GMT July 16, 2014
May/June 2014 U.K. Employment Data
U.K. Claimant Count Unemployment falls by more than expected. 6.50% unemployment remains below previous 7.0% Carney target.(Note: A declining Claimant Count is stronger and vice-versa.). Low wage groth keeps policy tightening pressure off BOE
london red 08:34 GMT July 16, 2014
May/June 2014 U.K. Employment Data
poor wages. rules out pressure for rate rise. cable will try no doubt to rally but now a sell on blips higher.
london red 08:28 GMT July 16, 2014
euro
Reply
surprising to not see 90 before move lower. unless 35 taken on downside, risk will be to fill candle up to 90.
uk data up shortly. wages the one to watch.
SaaR KaL 07:45 GMT July 16, 2014
uk
SD
It is the data
Still a sell above 0.7910 avg
0.7964 0.7856
london red 07:39 GMT July 16, 2014
uk
144 month ema 7907. been touched today. a couple of years back it was the low for ensuing rally, so a v imp level. of ourse monthly close is what counts but still imp today given there is also a barrier at 7900 which is to be defended/a target, depending on your view point.
SaaR KaL 07:38 GMT July 16, 2014
Day's Trades
Few More Pairs
Updates on Stocks and Indices
sd sf 07:36 GMT July 16, 2014
uk
seems it will be a eur/gbp day depending on the data.
SaaR KaL 07:14 GMT July 16, 2014
Day's Trades
CHFJPY
Longs TGT 115.30 from (113.10 to 112.54)
london red 07:10 GMT July 16, 2014
uk
Reply
unemployment rate expected to dip to 6.5% pretty much consensus, should spring cable to 73/80. further direction v much depends on wages growth. a good number here will see a test of 2008 high 17203 with a good chance of a break. a weak number will see gains quickly erased and a fall through 17120. A combined weak unemplyment and wages number would be a surprise and you would expect 17064 to be tested again.
SaaR KaL 07:06 GMT July 16, 2014
Day's Trades
EURJPY
Longs 137.3806 to 136.8012
tgt 139.8
SaaR KaL 05:52 GMT July 16, 2014
Day's Trades
NZDJPY
a good Buy too
tgt 91.20 from 88.68 to 88
SaaR KaL 05:50 GMT July 16, 2014
Day's Trades
CADJPY a Good Buy
TGT 96.18 from 94.50 to .94
SaaR KaL 05:23 GMT July 16, 2014
Day's Trades
Reply
Buying NZDUSD Below 0.8700 tgt .9000
AUDUSD Longs From 0.9330 and lower
TGT 0.9550
USDCAD Shorts Every 20 pips
USDCHF Shorts Every 20 pips
AUDNZD Shorts 1.0780 and above
EURUSD from 1.3550 to 1.3480
HK [email protected] 03:47 GMT July 16, 2014
‘No joke’: Germany mulls using typewriters to combat US snooping
Reply
Amid the worsening Berlin-Washington spy row, German politicians are considering going back to old-fashioned manual typewriters for confidential documents to protect national secrets from American NSA spooks.
Patrick Sensburg, the chair of the German parliament’s enquiry into NSA alleged spying, said committee members are considering new security measures and are seriously thinking about abandoning email and returning to old school typewriters.
“As a matter of fact, we already have [a typewriter], and it’s even a non-electronic typewriter,” he told the ARD Morning Show Monday.
The interviewer, apparently surprised by the idea, asked if that was really the case, The Guardian writes. “Yes, no joke”, responded Sensburg of Chancellor Angela Merkel’s Christian Democratic Union party.
Next... transfer messages by horse riders.
Hong Kong AceTrader 02:30 GMT July 16, 2014
Acetrader Jul 16: Daily Outlook on Major EUR/USD
Reply
DAILY MARKET OUTLOOK EUR/USD - 1.3565
Update Time: 16 Jul 2014 01:21 GMT
Euro's breach of last Monday's low at 1.3576 to 1.3562 on Tuesday due to broad-based firmness in greenback confirms correction from June's bottom at 1.3503 has ended earlier at 1.3700 in July and as price is currently trading below both 21-hour and 55-hour emas, suggesting consolidation with downside bias remains for a re-test of said low later this week.
On the upside, only a break of 1.3650 would prolong choppy trading above aforesaid low at 1.3503 and may risk another bounce towards 1.3700.
sd sf 01:46 GMT July 16, 2014
NEW YORK--Federal Reserve Bank of Kansas City President
1 Big Problem
Yellen
She wants the US Stock Market to trade just like her Heart Rate
steady all the way.
Need to subscribe her to a monthly delivery of Rib Eye Steak to try clog up those arteries some.
Syd 01:13 GMT July 16, 2014
NEW YORK--Federal Reserve Bank of Kansas City President
Reply
NEW YORK--Federal Reserve Bank of Kansas City President Esther George said Tuesday the economy would be "best served" by a steady and gradual campaign of short-term interest-rate increases by the U.S. central bank.
"Today's economy, with a strengthening labor market and rising inflation, is ready for a more-normal rate environment," Ms. George said. "Waiting too long may allow certain risks to build that if realized, could harm economic activity without room to adjust rates in response," she said.
"Getting interest rates off zero relatively soon is not only appropriate in terms of current economic conditions, but also will allow the Fed room to maneuver in the future should economic activity slow," the official said.
Ms. George's comments came from the text of a speech prepared for delivery before a conference held by her bank in Kansas City. Her speech followed congressional testimony given earlier Tuesday by Fed Chairwoman Janet Yellen. In her remarks, Ms. Yellen again noted that while the economy appears to be picking up speed, uncertainty and the lingering effects of the financial crisis continue to argue in favor of the Fed keeping monetary policy in a highly supportive stance for some time.
At the same time, Ms. Yellen also said what the Fed does with what are now near zero percent short-term rates depends importantly on how the economy performs. She told legislators "there's no formula and there's no mechanical answer I can give you" about the timing of interest-rate increases, as "it will depend on the progress of our economy."
Ms. George, who isn't currently a voting member of the monetary policy-setting Federal Open Market Committee, has been for most of her tenure consistently out of step with the outlook shared by her fellow central bankers. When she held a voting role on the FOMC last year, she was a consistent opponent of the central bank's easy money policy stance, although she failed to persuade her fellow voters that ultra easy Fed policy should end lest it fuel financial sector instability and unwanted levels of inflation.
In her remarks Tuesday, Ms. George warned that there are signs inflation, in the form of rising food price and rental costs, is heating up, at the same time investors appear to be going too far in sectors of the financial markets.
"These patches of potential excess paint a picture of financial markets that have become overly conditioned on high degrees of monetary accommodation," Ms. George said. Lack of volatility now found in markets is also an issue, she said. "While a lack of fear in markets may sound positive, it is a sign that market signals may be dulled by excessively accommodative monetary policy."
Ms. George was upbeat on the economy. "By the end of next year, I expect the economy will continue to grow and bring the unemployment rate to near its longer-run normal level with rising inflation," she said. DJ
dc CB 00:52 GMT July 16, 2014
BRICS thro' a brick at the USD, EURO
Reply
(Reuters) - Leaders of the BRICS emerging market nations launched a $100 billion development bank and a currency reserve pool on Tuesday in their first concrete step toward reshaping the Western-dominated international financial system.
The bank aimed at funding infrastructure projects in developing nations will be based in Shanghai and India will preside over its operations for the first five years, followed by Brazil and then Russia, leaders of the five-country group announced at a summit.
BRICS set up bank to counter Western hold on global finances
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