Fed

Forex News: CNBC reports Fed looking to purchase CP to ease pressure in that market

Greg Michalowski — Mon, 06 Oct 2008 09:06:49 -0400

The Commercial Paper market has been contracting as demand for corporate paper declines (due to credit risk). This is hurting the short term funding needs of not only financial corporations but also manufacturing corporations.

Forex News: Fed Announcements on additional liquidity measures

Greg Michalowski — Mon, 06 Oct 2008 08:18:00 -0400

`STANDS READY' TO FOSTER `LIQUID MONEY MARKET CONDITIONS'
TREASURY SEEK WAYS TO BOOST SUPPORT FOR `FUNDING' MARKETS
BEGINS PAYING INTEREST ON REQUIRED, EXCESS BANK RESERVES
TO BEGIN PAYING INTEREST ON BANK RESERVES
BOOSTS TAF CASH AUCTIONS, MAY REACH $900 BLN BY YEAR-END
EXPANDS FORWARD TAF AUCTIONS IN NOV. TO $150 BLN EACH
INCREASES SIZE OF TAF AUCTIONS OF CASH TO BANKS TO $600 BN
EXPANDS 28-, 84-DAY TAF AUCTIONS TO $150 BLN EACH

The Fed will add liquidity as long as it needed.

Forex News: The news is still fluid. Fed flooding market with liquidity

Greg Michalowski — Fri, 19 Sep 2008 08:41:05 -0400

Fed announces it will buy FNMA and Freddie Mac debt from Primary dealers. The move is intended to provide $ for the purchase of Commercial Paper from money market funds so that the money market funds can satisfy redemption requests.

Forex News: The Fed adds liquidity overnight to help liquidity crisis. What does it mean?

Greg Michalowski — Thu, 18 Sep 2008 08:48:58 -0400

The Federal Reserve increased the "swap lines" to foreign central banks in a way to increase the liquidity. The line was boosted to 180 billion dollars in total - spread among the central banks around the globe.

For example, the measure will allow the ECB to auction off US dollar liquidity to banks directly. This would circumvent the need to get liquidity from another bank. Currently, the ECB auctions short term liquidity for 28 and 84 days every other week. Banks that need $ liquidity will pay a competitive rate for the liquidity. Now they can offer dollars to their clients on a daily basis. This is in addition to the funds that central banks are offering to banks in their local currency.

Forex News: US Treasury borrowing long. Announce will be extend the duration of balance sheet

Greg Michalowski — Wed, 17 Sep 2008 10:12:03 -0400

The Treasury has announced that it will be extending the maturity of its debt as a result of recent activity. The funding of the bailouts are starting.

Hopefully the world believes the investments the US government is taking on (Freddie/Fannie, AIG) are sound. If the thought is the paper they are buying is not as great as it used to be, buyers could balk and funding rates could rise.

Forex News: Feds Stern on CNBC

Greg Michalowski — Tue, 12 Aug 2008 10:34:14 -0400

Longer run inflation should see some lower pressure for headline and core. Short term may see some uptick still
Tight credit restraining economic activity. Will take some time for headwinds to deminish.
Some time before see growth at or above trend
Economy has been 'very subdued'. See that in employment. Don't know if will be charaterized as a recession
Stonger dollar is a relief for the inflation outlook. The dollar has declined for some time and exports have benefitted.
It will pay to be paient at this point with regard to monetary policy. Inflation and Inflation expectations seems to have diminished.

Forex News: FXDD Special Report on Bernanke's Change of Heart on the US Dollar

Greg Michalowski — Wed, 04 Jun 2008 07:34:47 -0400

Chairman Bernanke's comments on the US dollar yesterday reflected a change in heart on the Fed's position on the US dollar. To print out the article, click on the PDF attachment at the bottom of the report.

Forex Analysis: The Fed's Change of Heart on the Dollar

Forex Special Report. The Fed's Change of Heart on the Dollar

Greg Michalowski — Tue, 03 Jun 2008 18:57:34 -0400

For an analysis of the Bernanke comments and why it might be important for the dollar, please click on the following Attached File.

Forex Trading: The market has calmed down as the London/Europe session comes to a close

Greg Michalowski — Tue, 03 Jun 2008 11:58:05 -0400

The market has calmed down as the European/London session comes to a close.

USDJPY remains above the support level of 105.01 to 105.10. The low has been 105.14 since the break higher.

Forex Trading News: FED's Lockhart on the Wires

Mr. Danish FX — Fri, 16 May 2008 07:29:13 -0400

Highlights from FED's Lockhart:

INFLATION EXPECTATIONS ARE ELEVATED, IS A SERIOUS CONCERN
Believes that a slowing economy will bring inflation down
Says that credit environment for broad swath of US borrowers is quite constrained
Adds that there is a good possibility that the US is in the low growth period
US may avoid recession on technical basis but economy is weak
Policy has to remain flexible to deal with whatever event may come