Financial regulators have done a lot to reform the derivatives markets that helped turn the financial crisis of 2008 into a global disaster. But their work is unfinished — and there’s even a danger that, in one way, they might have made things worse.
Derivatives are bets on the performance of something else, such as stocks, interest rates or creditworthiness. They can be useful in miti... read more
With President Donald Trump’s apparent plans to nominate Stephen Moore and Herman Cain to the Federal Reserve Board, attention has turned once again to the gold standard, a policy option once advocated by both men. Trump himself has expressed admiration for the gold standard.
To be clear: I don’t at all favor a gold standard. Still, it is worth thinking about why anyone might ever have... read more
Why Trump Wants the Fed To Pump Even More Easy Money
Donald Trump this morning condemned the Federal Reserve's "unnecessary and destructive actions," by which he presumably means the Fed's recent attempts to tighten monetary policy.
Since 2016 — after nearly a decade of ultra-accommodative monetary policy, the Fed began to ever-so-slightly scale back its easy-money policies, beginning w... read more
Bank of France Governor Francois Villeroy de Galhau pushed Germany and the Netherlands to use their fiscal firepower to reboot the ailing euro-area economy, warning that other countries have little room to help.
In his annual letter to French President Emmanuel Macron, Villeroy called for a combination of stimulus in nations with healthy finances and structural reforms in highly indebted c... read more
Central banks, with their policy arsenals limited by debt-laden balance sheets, are slowly but surely warming up to gold as a reserve asset. It’s a development that’s likely to bolster yellow metal prices already on a tear.
Spot gold (GC=F) is modestly higher on the year, but has added more than 12% since last August, when it languished below $1200 per ounce. Last month, Goldman Sachs fo... read more
LONDON (Reuters) - Global demand for gold in 2019 will rise to the highest in four years as higher consumption by jewelers offsets a fall in purchases by central banks, an industry report said on Monday.
The world will consume 4,370 tonnes of gold this year, the most since 2015 and up slightly from 4,364 tonnes in 2018, consultancy Metals Focus said.
Its Gold Focus 2019 report also pr... read more
SAN FRANCISCO (Reuters) - Federal Reserve policymakers need to be vigilant that muted inflation does not become ingrained in their expectations, but the U.S. central bank’s patient approach to monetary policy should allow inflation to reassert itself, San Francisco Federal Reserve Bank President Mary Daly said on Tuesday.
San Francisco Federal Reserve President Mary Daly poses for a pho... read more
- Google is reportedly looking to jump aboard the precious metals train, with the new Google Pay investment plan that allows users in India to buy 99.99% pure 24 karat gold, which will be stored in a digital form.
Local media reports appeared over the weekend, citing Google Pay’s already updated terms and conditions page as well as individuals familiar with the matter.
The idea behind th... read more
Federal Reserve Chairman Jerome Powell's assertion this week that the U.S. economy remains strong is facing a stern test from the bond market, which showed a classic recession sign Friday morning.
Short-term government fixed income yields are now ahead of the longer part of the curve, delivering a strong recession indication that hasn't happened since 2007.
The spread, or yield curve, betwe... read more
- Gold and silver prices are solidly higher and have notched three-week highs in early U.S. trading Thursday. The precious metals bulls are being fueled by a surprisingly dovish stance taken by the U.S. Federal Reserve on Wednesday afternoon. April gold futures were last up $13.90 an ounce at $1,315.60. May Comex silver was last up $0.247 at $15.57 an ounce.
The world marketplace is still d... read more
