Posts Tagged ‘ Jon Hilsenrath ’

Inmates Running the Asylum; Fed Policy 8-years into Recovery

September 16, 2016
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Inmates Running the Asylum; Fed Policy 8-years into Recovery

Last week, a Fed Governor, made comments hitting Bloomberg, that the Fed was not a handmaiden to the markets. The comments, not part of a major speech, and difficult to find on Google, were striking, and provocative, conjuring memories of a period when this would never need to be said. Today’s baffling Fed communication strategy involves speeches of voting members, non-voting members, incorporates guidance, including some guidance that makes its way to the cover of the WSJ through Jon Hilsenrath, and includes a full blown black-out period where no comments are allowed at all. What happened to the time when there was a Fed meeting, and sometimes unexpected things happened? Post-financial crisis, markets are viewed as fragile by policy makers. The extent to which markets are actually fragile is debatable,...

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The Fed Awakens; Creates Negative Global Market Backdrop

December 21, 2015
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The Fed Awakens; Creates Negative Global Market Backdrop

At the widely anticipated December 16th Fed meeting, the Board of Governors did the expected, and finally raised the US federal funds rate by 25 basis points. The rate-hike failed to surprise markets; the move was telegraphed and written about in advance by Jon Hilsenrath in an article on the front page of the Wall Street Journal, Wednesday morning, before the actual hike. So why did markets soar in anticipation of the hike, soar some more after the hike, and subsequently mini-crash on Thursday and Friday? No good answer on market action from CJF, but the volatility, exaggerated moves, and declining breadth, are all bearish indicators going forward. CJF takes a contrarian view to the initial goldilocks interpretation of the Fed hike; the Fed action is hawkish, creating a major obstacle...

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