For all the stated concern about Fed independence, it’s not easy to find signs financial market participants are losing confidence in the central bank.
European Central Bank President Mario Draghi is worried. So is Federal Reserve Governor Lael Brainard, as well as former Federal Reserve Chairwoman Janet Yellen.
In Washington, Draghi said he was worried about central bank independence in other countries, especially “in the most important jurisdiction in the world.”Brainard said the central bank favors “fact-based intellectually coherent arguments that are based on evidence, that are consistent over time,” words intended to draw focus on Moore’s and Cain’s switch from favoring higher interest rates when unemployment was high, to now calling for lower interest rates with unemployment low.
Inflation expectations, as derived from 5-year Treasury- TMUBMUSD05Y, +1.22% and inflation-protected securities, stood at 2%, which is right at the Fed’s target and lower than the 2.3% rate it was at during the autumn. But Robin Brooks, chief economist at the Institute of International Finance, says the recent strength of the dollar versus emerging-market countries is a puzzle since the Fed has engineered a very well publicized about-face, both on the need for further rate hikes and on bond buying. In a tweet, he said the feedback he has received indicates that the weakness in emerging-market currencies is a sign that investor confidence in the Fed has taken a hit.
Another sign, perhaps, of deteriorating confidence in the Fed is a rising risk premium — the difference in the yield on the 30-year TMUBMUSD30Y, +0.73% and the 10-year Treasury TMUBMUSD10Y, +1.49% securities is growing, rising to a nearly 18-month high.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Moore 'superbly underqualified' for Fed, vice chair of joint congressional committee saysStephen Moore, the economic commentator whom President Donald Trump plans to nom...
Read more »
Trump's plan to name Herman Cain to Fed meets Republican pushbackMembers of the president's own party signal that the former Godfather's Pizza CEO faces an uphill confirmation battle.
Read more »
Dow futures slightly higher ahead of inflation data, Fed minutesU.S. stock index futures were higher Wednesday morning, as market participants await inflation data and minutes from the Federal Reserve's latest meeting.
Read more »
Treasury yields edge lower ahead of Fed minutesU.S. government debt yields were slightly lower on Wednesday morning, continuing a downward move seen in the previous session.
Read more »
Stock market set to drift higher as investors await inflation data, Fed minutesU.S. stock-index futures point to modest open gains on Wednesday as investors brace for a trio of developments, including an important reading of inflation, and updates from European and U.S. central banks.
Read more »
Fed to Release Meeting Minutes: What to WatchThe Federal Reserve will release the minutes of its March meeting, providing more detail about officials’ discussions where most signaled they didn’t expect to raise interest rates this year.
Read more »
Stock markets open with slight gains as Wall Street awaits Fed minutesU.S. stock indexes opened with modest gains Wednesday as investors took an important reading of inflation, and updates from European and U.S. central banks....
Read more »
It’s Up To the Senate Whether the Fed Is PoliticizedFor more than a generation, the Federal Reserve has floated above politics, even as partisan conflict has consumed other public institutions. That’s a norm both parties have taken for granted—until now.
Read more »
Trump Today: President suggests Cain Fed pick in jeopardy as he rejects turning over tax returnsPresident Donald Trump on Wednesday suggested his pick of Herman Cain for the Federal Reserve was in jeopardy, as he rejected House Democrats’ demands to...
Read more »
Mnuchin says he doesn't believe Fed Chief Powell is the 'wrong person' despite Trump criticismU.S. Treasury Secretary Steven Mnuchin spoke with CNBC's 'The Exchange' on Wednesday.
Read more »
S&P 500, Nasdaq edge higher on tech gains; Fed minutes awaitedTechnology stocks lifted the S&P 500 and the Nasdaq on Wednesday, ahead of the r...
Read more »