Source: Bloomberg – Foreign Grip Loosens on Treasuries as U.S. Investors Buy
Notable excerpts:
Overseas creditors such as China and Japan enabled the U.S. to spend its way out of the recession as they gobbled up 80 percent of the nation’s Treasuries. Now, their holdings are dropping toward the lowest level in a decade, while homegrown investors have picked up the slack.
Source: Mises.org – After the Taper: The Fed’s Non-Plan Is Unchanged
As an economist, it is getting more difficult to understand the logic underlying current monetary policy in the U.S. There are two main channels by which economists think monetary policy can influence growth and employment. The first is to lower interest rates to spur investment and consumption spending. The second is to induce inflation so real wages drop, spurring output and employment.
Source: Bloomberg – U.S. Stocks Rise to Records as GDP Growth Tops Estimates
Notable excerpts:
U.S. stocks rose, with the Standard & Poor’s 500 Index capping its biggest weekly gain since October, as data showing faster-than-estimated growth boosted confidence in the world’s largest economy.
Source: Bloomberg – Fed Seen Tapering QE in $10 Billion Steps in Next Seven Meetings
Notable excerpts:
The Federal Reserve is likely to reduce its bond purchases in $10 billion increments over the next seven meetings before ending the program in December 2014, economists said.
Source: RT – US bank customers to pay for deposits if ‘easy money’ fades away
Notable excerpts:
Americans may have to start paying to keep money in the bank. Retail banks have warned they might need to start charging customers and companies for deposits if the US Federal Reserve cuts interest it pays on bank reserves.
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