“Incoming data since our meeting in early March confirm that the cyclical recovery of the euro area economy is becoming increasingly solid and that downside risks have further diminished.”
... »Where There Is No Will, There Is No Way, and There Is No Will in Frankfurt
May 3 2017
Edin Mujagić
President Trump Changes His Tone on Yellen and the Fed
April 26 2017
When on November 9, deep after midnight, it became known that Donald Trump would become the next president of the United States, many expected that it would mean a complete overhaul of the Fed, with a radical shift in the bank’s monetary policy as one of the consequences.
After all, during the election campaign, Trump repeatedly stated that, among many other things, he would find a higher official interest rate desirable, and that he did not agree with the Fed’s monetary policy. The Fed
... »Edin Mujagić
Less Oil on US Inflation Fire
April 19 2017
“But what about inflation? Inflation is quite high: should the Fed not keep its eye on the inflation rate and continue its rate hike trajectory? At a first glance, they should. But it would not surprise me if, in the coming months, the need for further rate hikes due to higher inflation is about
... »Edin Mujagić
Trump’s Tax Plans in Shambles, Stock Market Correction Ahead?
April 7 2017
Ever since it became known that Donald Trump would be the next American president, stock market indexes (the S&P 500, Dow Jones and Nasdaq) took an advance on his future tax plans. The Dow Jones rose by more than 12% after Trump´s election, while the S&P 500 rose by 10%. However, this so-called “Trump-trade” (buying stocks in anticipation of a future tax reduction) seems to be turning against itself, since it is not as easy as expected to actually lower taxes.
... »
Olav Dirkmaat
