Category: currencies

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The Federal Reserve and the U.S. Treasury decided to not intervene today in the foreign exchange markets.

November 14, 2024NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the July – September 2024 quarter, the Federal Reserve Bank of New York said today in its quarterly report to the U.S. Congress. The U.S. dollar, as measured by the Federal Reserve Board’s broad trade-weighted dollar index, depreciated … Continue reading The Federal Reserve and the U.S. Treasury decided to not intervene today in the foreign exchange markets.

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Growth in money supply is relatively flat, but is money more expensive?

Between September 2023 and September 2024, M2 money supply went from approximately $18,110.3 billion to $18,151.4 billion, according to data from the Board of Governors of the Federal Reserve System. This amounted to a decrease in money supply of 2.17%. During that period, the money supply dipped as low as $17,923.3 billion in February 2024. … Continue reading Growth in money supply is relatively flat, but is money more expensive?

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Today should mark America’s march toward a winning currency policy.

Around 2:00 am this morning, it was projected that Donald J. Trump had secured enough potential Electoral College votes to be America’s 47th head of state. The official certification as president-elect will not occur until the middle of next month in the Electoral College with certification by the President of the Senate of the Electoral … Continue reading Today should mark America’s march toward a winning currency policy.

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The fix is in. Yields inching higher. The polls tightening. Tomorrow night will be pizza and popcorn night.

The 4:15 pm fix is in. According to the Federal Reserve’s data, two-year and ten-year yields have been inching up over the last week. Throw in a little dollar weakening compared to the euro. Given we are closer to the beginning of Election Day (14.5 hours at the time of this writing), could some political … Continue reading The fix is in. Yields inching higher. The polls tightening. Tomorrow night will be pizza and popcorn night.

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Political risks create either shorting opportunities or existential threats …

Four types of political risks arguably move interest rates. First, the perception of fiscal responsibility. If bond holders perceive an increased risk in the government defaulting on bond payments, or not collecting enough in taxes, bond holders will want a higher interest rate before lending the government more money. Second, the economic stances of a … Continue reading Political risks create either shorting opportunities or existential threats …

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When it comes to inflation, those Europeans are violent …

For merchants entering forward contracts for their international trade, they should keep in mind that markets, overall, are not too concerned about who wins the U.S. presidency, especially given the good odds that the Congress will be split and that whoever is chosen as Treasury secretary will likely maintain the U.S. policy of a strong dollar. Continue reading When it comes to inflation, those Europeans are violent …