inflation

Is the Swiss National Bank Winding Down Its Currency Intervention?

I continue to read that the Swiss franc has been gaining on the euro because of the euro’s weakness. This observation appears correct when reviewing the euro’s slide against the dollar since early December (EUR/USD) and the parallel appreciation in the franc versus the euro (EUR/CHF). Yet, the euro has essentially stabilized versus the dollar … Read more

What Is the Deal with Steel Production and Prices?

Last week, I noticed media headlines screaming the horrible news that “Crude steel output in 2009 to hit lowest level in 40 years.” As I searched for the direct source of this quote from Japan’s Ministry of Economy, Trade, and Industry (METI), I stumbled upon its “Preliminary Report on Iron and Steel, Non-ferrous metal, and … Read more

Wishing Warsh Good Luck With Pre-emptive Tightening of Monetary Policy

On Friday, Federal Reserve Governor wrote an op-ed piece in the Wall Street Journal titled “The Fed’s Job Is Only Half Over.” In this piece, he suggested that while “…longer-term inflation expectations are stable, and economic conditions are likely to warrant exceptionally low levels of the federal-funds rate for an extended period…prudent risk management indicates … Read more

No New News on Negative Rates from Bank of England’s Meeting Minutes

This morning, the Bank of England released its minutes from the September meeting of the Monetary Policy Committee. From my reading, it contained no new news on the prospects for negative interest rates. The “relief” from the minutes has so far lifted the pound against the euro, the U.S. dollar, and even the yen. I … Read more

Adding to Holdings in TIP

I know it seems strange that on another day when it seems like stocks are destined for infinite glory that I am adding to my existing holdings in TIP, the iShares Barclays TIPS Bond Fond (TIPS = Treasury Inflation-Protected Securities). I also remain overall bearish so a steep correction in the stock market will probably … Read more