Quantitative easing may have overstayed its welcomeMarch 06, 2014 Posted by: Pete Karabatos
Some members of the Fed are becoming increasingly concerned about continued accommodate policy. Richard Fisher, the Dallas Fed President, commented that "there are increasing signs quantitative easing has overstayed its welcome.” Fisher further noted that “market distortions and acting on bad incentives are becoming more pervasive. I fear that we are feeding imbalances similar to those that played a role in the run-up to the financial crisis." With respect to the equity markets, Fisher commented that they are at "eye-popping levels not seen since the dot-com boom." A paring back of US stimulus would likely be a positive for the USD.
• Rustam Temigaliev, Crimean First Vice-Premier, announced that the Supreme Council of Crimea's Autonomous Republic wants to succeed from Ukraine and join the Russian Federation as Russia's subject. A referendum will be held on March 16.
• The Bank of England kept their benchmark interest rate unchanged at .50%, as expected, extending their stimulus program into its sixth year. The GBP is now trading less than 1% off of four-year highs.
• The Euro hit a two-month high against the USD after European Central Bank President Draghi said that inflation is expected to rise gradually thereby tempering expectations that additional stimulus will be introduced.
• The Indian Rupee surged to nearly three month highs after the country’s current account deficit hit the lowest levels in four years.
03/07 CAD: Unemployment Rate (Feb)
03/07 USD: Non-Farm Payrolls (Feb)
03/10 CAD: Housing Starts (Feb)
03/10 AUD: Business Confidence (Feb)
03/11 GBP: Industrial Production (Jan)
03/11 USD: Wholesale Trade Sales (Jan)
03/12 GBP: Trade Balance (Jan)
03/12 EUR: Industrial Production (Jan)
03/13 CAD: New Home Prices (Jan)
03/13 USD: Retail Sales (Feb)
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