The Fed is trying to fit round pegs in square holes
The Fed, that gave guidance of four rate hikes in 2016, has now reduced its long term growth expectations to 1.75%...Â
Fed's ​Fischer gave an economic lesson based on the IS (Investment=Savings) curve for assessing the long run equilibrium interest rate, using, as he put it, economic language from the 1930s, an era of gramophones and propeller planes, compared to the smartphones, supercars, and space stations economy of 2016.
 Minutes of the Federal Reserve’s September meeting emphasised the importance of maintaining credibility, therefore markets might have expected speeches from Janet Yellen and Stanley Fischer to give some semblance of a coordinated policy. Instead, both went in opposite directions, (Fischer trying to fit round pegs in square holes), using economic models and theory, rather than considering the real economy. They both appear to be as confused as each other and both are concentrating on the supply side as the driver of growth...
 Four factors should be considered when assessing the appropriate level for current interest rates...
Â
Since 2012, top tier global Hedge, Pension, Investment and Insurance Fund managers, as well as corporates and private individuals, have benefited from Macro Thoughts’ proven insight, market commentary, hedging, and investment strategies to leverage opportunities, with positive returns on over 75% of strategies, producing double digit returns for our clients over consecutive years.
Macro Thoughts is independently researched and draws on extensive macroeconomic and market experience gained in Fixed Income, Futures, Derivatives, Bond, Forex, Commodity and Equity Index markets and from strong Global Macro investment, risk taking and strategy backgrounds. Far-reaching product knowledge across asset classes enables us to consider hedging and investment strategies that reflect our expected market trends. Macro Thoughts is directed by Keith Grindlay, whose experience spans, somewhat uniquely, both the buy and sell side, having managed trading and investment desks at top tier institutions, ensuring all strategies are evaluated for risk/reward and the optimal instrument(s) for best leveraging the strategy suggested are employed.
Globally recognised for strong analytical skills, aligned with a particular aptitude for anticipating global economic events ahead of the majority of commentators, Macro Thoughts’ independent fundamental economic research and analysis and resultant strategies have a track record that assures exceptional results, with a service that surpasses the model of bank-supplied, partisan research and stands out from the general contributions on platforms that your clients and peers already have access to. The support and value offered by Macro Thoughts, delivering written research and analysis, presentations and consulting services, is backed by decades of macroeconomic and market experience and can be tailored to your specific requirements.
Member of the Royal Economic Society & EuroIRP, the European Association of Independent Research Providers.
www.macrothoughts.co.uk
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.