Entries by Zane Brown

    Yellen Tilts Toward Fed Action in December

    August 26, 2016 2:19 PM by Zane Brown

    In her closely watched speech at the U.S. Federal Reserve’s annual symposium in Jackson Hole, Wyoming, the Fed chair signaled a higher likelihood of a rate hike in December. 

    Media coverage and memories of former U.S. Federal Reserve (Fed) chairman Ben Bernanke’s surprise signaling of the second phase of quantitative easing (QE2) at the 2010 event of the Fed’s annual late-summer symposium at Jackson Hole, Wyoming, kept investors’ attention focused on the opening speech from the current Fed chair, Janet Yellen, for the 2016 gathering. 

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    The Fed Thinks Global

    March 16, 2016 4:45 PM by Zane Brown

    The central bank's concern for developments overseas may have informed its decision, on March 16, to scale back rate-hike projections.

    The U.S. Federal Reserve (Fed) has made a point of emphasizing that it will be “data dependent” in formulating any future policy moves. However, the Fed threw markets a curve on March 16 by citing recent turmoil in global markets, as it held the fed funds target rate steady at 0.25–0.50%—and scaled back projections for additional rate hikes in 2016 and beyond.

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    ECB: Draghi Drops the Big One

    March 10, 2016 2:52 PM by Zane Brown

    Here’s a look at the investment implications of the European Central Bank’s massive new stimulus effort.

    European Central Bank (ECB) president Mario Draghi has said he would do “whatever it takes” to boost a stagnant eurozone economy. On March 10, global investors learned that in this context, “whatever” means “more than you can imagine.”

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    The Fed Faces a Changed World

    January 27, 2016 4:48 PM by Zane Brown

    The U.S. Federal Reserve’s January policy statement acknowledged global market turmoil and implied a less aggressive pace of rate hikes.

    What a difference a month makes. The world in which the U.S. Federal Reserve (Fed) conducted its two-day policy meeting on January 27 is quite a different place than the one that characterized its previous meeting in mid-December. 

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    U.S. Stocks: Keep Calm and Don't Sweat the Yuan

    January 7, 2016 5:40 PM by Zane Brown

    Investors may be overreacting to economic and currency developments in China. Sound familiar?

    The new year certainly has been less than happy thus far for U.S. equity markets, but it appears that just as investors did in August 2015, they may have overreacted to recent developments in China.

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    How Could ECB-Fed Divergence Affect LIBOR?

    December 28, 2015 11:45 AM by Zane Brown

    Here’s a look at how the benchmark lending rate might respond to the differing policy paths of U.S. and European central banks.

    How can we expect LIBOR—more formally, the London Interbank Offered Rate—to react if the European Central bank (ECB) is aggressively easing its monetary policy while the U.S. Federal Reserve (Fed) does the opposite?

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    The Fed Awakens

    December 16, 2015 4:13 PM by Zane Brown

    The long-awaited interest rate hike by the U.S. Federal Reserve is now a reality. Perhaps more important to investors, policymakers indicated that they may not be in a rush to tighten further. 

    As the NASA hands at Mission Control might say, “We have liftoff.” The U.S. Federal Reserve’s (Fed) policy-setting arm, the Federal Open Market Committee (FOMC), delivered its long-promised 25 basis-point increase in the fed funds rate at the conclusion of its meeting on December 15–16. The Fed’s last rate hike was in June 2006.

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    The Fed: Why This Rate Hike Will Be Different

    December 15, 2015 2:46 PM by Zane Brown

    The anticipated tightening move by the U.S. Federal Reserve on December 16 would feature some new wrinkles. Here’s an explanation of the process.

    A December rate hike by the U.S. Federal Reserve (Fed) will be the first such move since June 2006. For many advisors, it will be the first rate hike in their career. It also will mark something of a first for the Fed, too.

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    Global Economy: Developments to Watch after Paris

    November 19, 2015 4:20 PM by Zane Brown

    What should investors be monitoring in the wake of the attacks on November 13? 

    As governments respond to the threat of terrorism in the aftermath of the November 13 attacks in Paris by Islamic State (IS), some developing trends may have significant economic implications. 

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    The Fed: October Jobs Report Starts Countdown to "Liftoff"

    November 6, 2015 1:25 PM by Zane Brown

    Strong growth in nonfarm payrolls, and an uptick in hourly earnings, increases the odds of a December rate hike. 

    Will we have “liftoff” at last? The 271,000 monthly gain in nonfarm payrolls in the U.S. employment report for October, released Friday, November 6 by the U.S. Bureau of Labor Statistics, boosts the likelihood of a rate hike by the U.S. Federal Reserve (Fed) at its December policy meeting. 

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