December 19, 2012
Nikkei Rises Above 10,000; Yen Drops to Weakest Level Since April 2011
Bloomberg reports Yen Falls to August 2011 Low Versus Euro on Stimulus Bets .
Hard hitting global and local news
Hard hitting global and local news
Bloomberg reports Yen Falls to August 2011 Low Versus Euro on Stimulus Bets .
Boehner Floats Fiscal Cliff “Plan B” Both house speaker John Boehner and president Obama have given ground in the “fiscal cliff” drama. The sides are still far apart but concessions now are steady
The Japanese election hands former prime minister Shinzo Abe a chance for redemption according to The Guardian .
Car sales are up in the UK, but down 10% on average in the EU. Overall sales, including the UK, are down for the 14th consecutive month
Small Business Owners Cut Capital Expenditures, Plan to Cut Even More According to the latest Gallup survey, Small-Business Owners Pull Back Capital Spending Plans . Moreover, net capital spending by small businesses declined over the last year as well
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Today the Federal Reserve issued this Policy Statement Regarding Purchases of Treasury Securities and Agency Mortgage-Backed Securities . On December 12, 2012, the Federal Open Market Committee (FOMC) directed the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York to purchase longer-term Treasury securities after the maturity extension program is completed at the end of December 2012, initially at a pace of about $45 billion per month. The FOMC also directed the Desk to continue purchasing additional agency mortgage-backed securities (MBS) at a pace of about $40 billion per month. These actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative. The FOMC also directed the Desk to maintain its existing policy of reinvesting principal payments from the Federal Reserve’s holdings of agency debt and agency MBS in agency MBS, and, in January, to resume rolling over maturing Treasury securities into new issues at auction.
In light of Carney’s " radical action " statements, please consider Bank of Canada warns of low-rate risk . The Bank of Canada says low-interest policies that it and other central banks have put in place are adding another layer of risk to the already stressed global financial system
The chart assumes a steady rise in labor force to the BLS 2020 projection of 164,360.