Friday, July 25, 2014


Bloomberg | Dollar Rises to Highest in Month as U.S. Outperforms
A gauge of the dollar rose to the highest level in a more than month amid signs the U.S. economy, beset by years of sluggish growth, is outperforming its major peers.
Market Watch | Fed clears Zions' resubmitted stress test
The Federal Reserve said Friday that it won't object to a resubmitted capital plan by Zions Bancorp. The Fed had previously rejected a plan because the bank did not meet the minimum, post-stress tier 1 common ratio of 5%, but under the new submission, the firm's minimum, post-stress tier 1 common ratio was 5.1%.
Market Watch | Japan prices inflate further, thanks to sales tax
Japan's consumer prices chalked up steady increases in June, at least on an annual basis, according to data out Friday from the Statistics Bureau, though the results again reflected the April 1 sales-tax hike.

Econ Comments & Analysis                                                                                            
Market Watch | Obama: Fed focused on right thing
President Barack Obama on Thursday said Fed Chairwoman Janet Yellen and her colleagues at the U.S. central bank have been right to focus on restoring the health of the U.S. labor market. In an interview on CNBC, Obama said the cost of high unemployment of young people and workers who can't get back into the labor market "has devastating effects on the economy for generations."
Telegraph | IMF fears ultra-low rates are fuelling asset bubbles
Ultra-low interest rates around the world are fuelling financial bubbles and pushing investors into overvalued assets, the International Monetary Fund has warned in a marked shift of policy.
WSJ | The Federal Reserve's Risky Reverse Repurchase Scheme
Four years after the passage of Dodd-Frank, we are still discussing whether the law has made the financial system more stable. These discussions are important, yet too little attention is being paid to a Federal Reserve program called the Overnight Reverse Repurchase Facility, also referred to as ON RRP. This program, while well-intentioned, could be a new source of financial instability. It needs a closer look.
CATO | Fed Proposal to End Bailouts Falls Short
At the heart of public anger with Wall Street is the sense that accountability is lacking. The largest banks seem to live in a ‘heads I win, tails you lose’ world in which they keep their gains but receive a bailout to prevent their failure.

WSJ | Which Wage Measure Best Captures Inflation Pressures?
Federal Reserve Chairwoman Janet Yellen has made clear that her perceptions of a healthy labor market hinge on more than just the unemployment rate or the strength of recent job gains. Also high up on her labor-market dashboard is wage growth. As labor markets tighten, workers should be able to bargain for bigger raises.