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Thursday, June 26, 2014

Monetary

News                                                                                                                             
Bloomberg | Fed Neutralized in Mortgage Bonds on Supply Slump
The $5.4 trillion market for U.S. government-backed mortgage bonds is poised for its biggest first-half rally since 2010 as a surprising drop in supply outweighs a pullback in Federal Reserve purchases.

Econ Comments & Analysis                                                                                            
Market Watch | Time for Yellen to target inflation, worry less about jobs
Now Federal Reserve Chairwoman Janet Yellen is herself approaching a crossroads. And the stakes are also very high: the health of the markets and the U.S. economy over the next few years.
Bloomberg View | Banks Can Still Have Fun Prop Trading in Rates
Lawmakers sought the flexibility to finance government spending and didn’t see the trading as particularly risky, said Barney Frank, who as a Massachusetts congressman helped draft the 2010 Dodd-Frank Act that mandated the Volcker Rule.
Market Watch | Kevin Warsh: Fed policy is 'reverse Robin Hood'
The Federal Reserve's easy-money policies are benefiting the rich at the expense of the poor in a "reverse Robin Hood" scenario, said Kevin Warsh, a former member of the Federal Reserve System Board of Governors.

Blogs                                                                                                                             
WSJ | Consumer Inflation Hits Highest Level Since 2012, Near Fed’s 2% Target
The price index for personal consumption expenditures — the Federal Reserve’s preferred gauge — advanced 1.8% in May from a year earlier, the Commerce Department said Thursday. That was the highest since October 2012.