Daily Comment

Daily Comment (July 21, 2017)

by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT] Happy Friday!  Here are the items we are following this morning: Pardon me:  Numerous media reports indicate that the Trump administration is exploring pardoning options and ways to ring fence Special Counsel Mueller’s investigation.  There are overtones of Nixon in these comments.  First, seeking pardons when… Read More »

Daily Comment (July 20, 2017)

by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT] Equity markets continue their quiet rise to new records.  Here are the items we are watching this morning. ECB, BOJ lean dovish:  The BOJ came out overnight with nothing that wasn’t unexpected.  It is clear the bank won’t reach its inflation targets anytime soon, so it… Read More »

Daily Comment (July 19, 2017)

by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT]The summer doldrums are upon us.  Financial markets are very quiet this morning in front of tomorrow’s ECB meeting and press conference.  Here is what we are watching this morning: The ECB:  The EUR has been rising recently, in part due to expectations the ECB will… Read More »

Daily Comment (July 18, 2017)

by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT] Although global equity markets are steady to lower this morning, there is a lot of action in the forex markets.  The dollar is sliding on a combination of lower expectations for Fed policy tightening and the lack of policy progress from the Trump administration.  Here are… Read More »

Daily Comment (July 17, 2017)

by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT] It was another quiet weekend.  Here are the news items we are tracking this morning: China economy:  GDP, somewhat predictably, came in a bit stronger than expected, at 6.9% (y/y%).   It’s important to remember that China can generate any growth number it wants as long as… Read More »

Daily Comment (July 14, 2017)

by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT] The CPI data came in weaker than expected, sending the dollar and Treasury yields lower.  We examine the data in the context of policy using our Mankiw model variations below.  Outside the inflation numbers, here are some of the other news issues we are tracking this… Read More »

Daily Comment (July 13, 2017)

by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT] Here’s what we are watching today: Yellen, Round 2:  There was nothing in Yellen’s testimony that differed from her opening statement which the markets took as dovish.  Our comments yesterday appear to be mostly confirmed; the FOMC is shifting to emphasizing balance sheet reduction and less… Read More »

Daily Comment (July 12, 2017)

by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT] The Chair speaks: The text of Chair Yellen’s comments has been released in front of her testimony to Congress.  Market reaction is consistent with a dovish stance.  Here is the excerpt that is probably triggering the weaker dollar/stronger equities/stronger Treasuries/higher gold trade: …based on our view… Read More »

Daily Comment (July 11, 2017)

by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT] It’s another quiet summertime morning.  Here are the headlines we are watching: It’s official—Randal Quarles is likely the newest Fed governor: The Trump administration formally nominated Quarles for the chair vacated by Dan Tarullo.  His name has been in the media for several weeks, so the… Read More »

Daily Comment (July 10, 2017)

by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT] Happy Monday!  It’s officially mid-summer as baseball’s All-Star Game will be held tomorrow. Global markets are rather quiet this morning.  Here are the headlines: G-20: The U.S. is becoming steadily isolated in the world as per the design of the Trump administration (and, to be fair,… Read More »

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