The Fed’s Brave New Interest Rate World

On December 17th, 2015, the FOMC raised interest rates for the first time since the 2008 financial crisis. To be sure, it had little choice. The Fed had been signalling an interest rate rise persistently for months, and had already disappointed markets twice by delaying rate rises in September and October. It had painted itself into the same corner as the ECB did over QE earlier in the year. The ECB signalled for months that it was going to start QE, and backed off several times, to the di...
More

IMF to FED: Delay Interest Rate Increase

http://www.youtube.com/watch?v=PxOILDkU-8Q The Federal Reserve should delay raising interest rates until the first half of 2016, the International Monetary Fund said as it cut its U.S. growth forecast for the second time this year. The lender also said that the dollar was “moderately overvalued” and a further marked appreciation would be “harmful,” in a statement released in Washington on Thursday on its annual checkup of the U.S. economy. “We still believe that the underpinnings for ...
More

Japan Holds more US Treasury Debt than China

Japan overtook China in February as the top foreign holder of U.S. Treasury securities, a position Japan last held in August 2008. In its monthly report on bond holdings, the Treasury Department said Wednesday total foreign holdings of Treasury debt dipped 0.9 percent in February to $6.16 trillion, down from a record of $6.22 trillion in January. The holdings of China, normally the top holder of Treasury debt, slipped 1.2 percent to $1.22 trillion. Japan's fell 1.1 percent from January. Ch...
More