FOMC Members "Badly Out of Touch," says Keith Fitz-Gerald
In the wake of the Federal Reserve meeting last week, FOMC members have many public appearances planned in which they're expected to clarify the central bank's recent policy decisions.
Count Money Morning Chief Investment Strategist Keith Fitz-Gerald as one investing expert who will not be hanging on every speech.To continue reading, please click here...
Silver Prices Today Have Ben Bernanke to Thank
Thanks to that "party animal" Ben Bernanke, silver prices today are enjoying a nice bounce.
That's because the U.S. Federal Reserve chairman, along with the other members at the Federal Open Market Committee (FOMC) meeting yesterday, decided to keep the quantitative easing (QE3) flowing steady with $85 billion of bond buying per month.
After the Fed announcement, silver prices rallied by 5.5% to more than $23 an ounce. That's the precious metal's biggest one-day gain since June 28.To continue reading, please click here...
- Keith Fitz-Gerald Nails It on Today's FOMC Meeting Money Morning’s Chief Investment Strategist went on record with his prediction months ago, stating that there’s not a central banker in the world who has the guts to step away from QE. Few – if any – investors agreed. But they didn’t lock in a 100% gain, either… Read more...
All Things Fed: Keith Fitz-Gerald on Janet Yellen and Today's FOMC Meeting
Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co." today to discuss this week's FOMC meeting and Janet Yellen.
On Monday, Larry Summers announced he is dropping out of the candidate list to replace Ben Bernanke and become the next Fed chief. Next in line for new Fed chief role is Janet Yellen.To continue reading, please click here...
- Today's FOMC Meeting Cheat Sheet Federal Reserve policy meetings invariably move the markets. Yet, surprisingly, many retail investors don't pay that much attention to them. Here's what the members of the Fed have been talking about this week - and why it matters... Read more... Read More...
Check Out What the FOMC Meeting Minutes Did to the Stock Market Today
In one of the most highly anticipated releases of the year, the Federal Open Market Committee (FOMC) meeting minutes from July 30-31 were released today (Wednesday).
They will be picked apart for days - but here's what you need to know.Read More...
- FOMC Meeting: Fed Just Backtracked on QE Taper Talk After the two-day FOMC meeting, the committee just backtracked on all the previous taper talk - here's why the Fed might be "winging it." Read more... Read More...
Exclusive: Obama Tells Money Morning Why He Just Loves Larry Summers…
Larry Summers for Fed Chief... He's got my vote. Absolutely!
Why? You just have to get to know the guy and you'll see he's perfectly qualified to head the Federal Reserve.
Here's just part of his resume.
From 1982-1983, Larry Summers was on staff at Ronald Reagan's Council of Economic Advisers. That's where Lawrence of Enablers earned his "Deregulate Everything" T-shirt.
After his brief stint on the Gipper's Council, where he was taught how real pros corral free markets for personal profit, the Enabler headed back to Harvard to teach kids (and himself) how to squeeze personal wealth out of mere economic theory.
He got his next shot at stardom as Chief Economist of the World Bank in 1991. He was there until 1993.
While there he wasted no time shining a light on himself.
In a 1991 interview he famously said:
Read on here... Read More...
FOMC Meeting: Look to Statement for QE Clues
Don't expect a definitive answer from this week's Federal Open Market Committee (FOMC) meeting on when the Fed will begin tapering its massive quantitative easing program.
Instead, the focus will be on the FOMC's statement, which will be scoured for clues about when scaling back QE3 could begin.
"We do not expect any modifications to the asset purchase pace or forward guidance at this meeting, so markets are likely to hang on every word change in the statement," Michael Hanson, an economist at Bank of America Merrill Lynch Global Research, said in a research report.
This month's FOMC meeting is the last before September, the month the markets have been expecting the Fed to announce "the taper."
Brian Gardner, senior vice president of Washington Research at Keefe, Bruyette & Woods, said the economic outlook will be key to finding taper clues.
"We do not expect any changes in policy (either for large-scale asset purchases or for Fed funds rates) but the commentary on the state of the economy could be significant," Gardner said in a research note. "As Fed officials have recently reinforced their intent to look at the outlook for the labor market and the economy, any change in the Fed's description of the economy could provide a better idea of when the Fed might taper asset purchases."
But, Gardner added, "Our guess is that any change in language will be nuanced and keep the markets guessing about when the Fed will taper."
He said Friday's jobs report may ultimately be as significant as the FOMC statement in terms of gauging when tapering would take place.Read More...
- Keith Fitz-Gerald: What Ben Bernanke is Doing to the Markets http://moneymorning.com/wp-admin/post.php?post=100375&action=edit# Read More...
FOMC Meeting: Fed Provides No Direction to Markets on QE, Adding to Volatility
Market participants were hoping for clarity following the highly anticipated FOMC meeting Wednesday on the big question: to taper, or not to taper?
As many expected, there were no explicit statements about when the Fed would end its massive quantitative easing (QE) measures.
"A few weeks back, I noted that Chairman Bernanke wouldn't have the guts to take his foot off the gas pedal when it came to stimulus, so it's no surprise to me that he's going to keep plowing $85 billion a month into bond buying," explained Money Morning Chief Investment Strategist Keith Fitz-Gerald. "What's interesting to me is that the market fell anyway, when he announced the economic risks have subsided."
The U.S. central bank kept its benchmark interest rate at 0%-0.25%, and kept in place its $85 billion a month bond purchase program. The consensus remains that the Fed will start to "taper" QE before the end of the year - although the timeline wasn't made clear today.
"I think the markets didn't get the clarification they wanted," Fitz-Gerald continued. "Are things good enough that stimulus is no long warranted or bad enough that bond purchases are still required? For a guy who promised a new era in Fed transparency, this is yet more double talk."
As for when interest rates (near zero since December 2008) could be raised - likely a separate and farther-out move than tapering QE - Morgan Stanley Chief Economist and former FOMC secretary and economist Vincent Reinhart has said the clue is in when QE starts to end.
He says if QE and rate decisions are data dependent, as the Fed maintains, the two cannot be separated. So any future Fed tapering talks suggests Team Bernanke has grown more optimistic about the health of the economy and less inclined to believe further QE will prove advantageous.
Bernanke said today any change in policy will come after stability in the Fed's economic forecasts.Read More...
Today's Fed Meeting and Gold Prices
Over the last several years, the move in gold prices have been more and more in sync with market perceptions of what actions will be taken by the world's major central banks.
For example, today's Fed meeting and its anticipated outcome has kept gold prices under pressure lately, with gold on Tuesday falling 1.2%.
The past few years has seen the Federal Reserve, European Central Bank and, most recently, the Bank of Japan flood the world's financial markets with money through bond purchases and other operations.
As this occurred, the price of gold floated higher on the sea of liquidity.
Gold soared 70% from the end of December 2008 to June 2011 through the first two rounds of QE (quantitative easing). Then after the announcement of the launch of QE3 last September, gold climbed to over $1,770 an ounce on the back of the Fed announcing open-ended purchases of bonds.To continue reading, click here... Read More...
Federal Reserve FOMC Meeting Schedule 2013-2014
As a service to Money Morning readers, we are providing the Federal Reserve FOMC meeting schedule.
The U.S. Federal Reserve's Federal Open Market Committee (FOMC) is a 12-member board within the Federal Reserve system that meets eight times a year to set policy.
In addition to the regularly scheduled meetings, the FOMC can call other meetings as needed. The minutes of a regularly scheduled FOMC meeting are released three weeks after the date of the policy decision.Read More...
What's So "Open" About the Federal Open Market Committee?
Don't you just love how some things are named?
Like the Federal Reserve System, for instance. It's a central bank that was conceived in the private study of a private hunting lodge on a private island by a bunch of private bankers who didn't want to use the word "bank" in its name to fool taxpayers who thought it was a "system" to safeguard the public... from the very bankers who conceived it.
I don't know about you, but the feeling of safety I have is just overwhelming... NOT.
Then there's the Federal Open Market Committee (FOMC). That's a committee of top plotters that meets in private to discuss what's going on in "free" markets so they can figure out how to manipulate them.
The Open Market Committee, or the Old Boys Club (they have a woman on the committee, but she's just a token "dove" who plays "Follow the Beard"), meets today and Wednesday to check on how their manipulations have stopped unruly free markets from sinking the banks that secretly run the Fed (you know it's not a secret, but there are a whole lot of taxpayers who don't).
To continue reading, please click here...Read More...