News
WSJ | Euro-Zone Banks Still Hoarding
The European Central Bank's latest interest rate cuts have finally taken effect, but there was still no convincing sign Thursday that euro-zone banks had stopped hoarding their excess cash.
Market Watch | Fed slated to release Libor documents
The New York Fed is slated on Friday to release documents about problems with a global benchmark interest rate during the financial crisis as the controversy swirls on both sides of the Atlantic.
Market Watch | U.S. wholesale prices rise 0.1% in June
U.S. wholesale prices rose a seasonally adjusted 0.1% in June as higher costs for food, light trucks and appliances offset another decline in energy costs, the Labor Department said Friday.
CNN Money | Geithner identified Libor problems in '08
Treasury Secretary Tim Geithner suggested ways to prevent banks from manipulating the Libor interest rate in a memo to the Bank of England back in 2008, when he was president of the New York Federal Reserve, according to a copy of the memo published Friday.
Econ Comments & Analysis
Real Clear Markets | Central Banks Pour Gasoline On the Fire
The US Treasury completed a re-opened auction of 10-year government bonds yesterday into what was an otherwise uneventful day in US markets. Just before the auction was completed, the expected 10-year yield ("when issued") was trading about 1.516%, an extremely low level itself.
Blogs
Economist | QE sera, sera
This week's print edition includes a long primer on QE. Asset-purchases have been the principal unconventional monetary policy tool deployed by rich-country central banks in this crisis, and their use is once again ramping up; the Bank of England just scaled up its QE plans by £50 billion, the Fed may use its next meeting to pivot from "Twist" operations back to QE proper, and the ECB's recent interest rate moves have some suggesting that QE could be on the table there, as well.
Economist | The inflation question
What you may be able to pick out there is that the Fed tends to respond to falling inflation expectations. Over the past few months, inflation expectations have been moving down; they're currently at about 1.78%. But unless there is a substantial drop in expectations in the next couple of weeks, a decision at the Fed's next meeting (on July 31-August1) to initiate new asset purchases would mark the highest level of 5-year inflation expectations at which a new purchase plan was rolled out.
