Fed has not lowered interest rates enough: Kocherlakota
The Federal Reserve has not done enough to lower U.S. borrowing costs to boost economic growth, a top Fed official said on Friday, citing his outlook for overly low inflation and overly high unemployment over the next two to three years.
QE Reduced This Summer
Futures are higher in spite of the second strong hint from the Federal Reserve in less than a week that there could be an earlier than expected scaling back of the Federal Reserve’s quantitative easing program.
Bank of America and Friends Win Big
The Motley Fool
Shortly after the bell, Bank of America is on track to regain the 1% it lost yesterday. Though it does appear that the bank may be moving along with the market, there is one big headline that might be swaying the bank’s investors toward the positive end of the spectrum.
Euro Eyes Fresh 2013 Low on ECB Policy- Pound Rebound on Tap
The Euro slipped to 1.2830 as European Central Bank (ECB) board member Benoit Coeure reiterated that the Governing Council is ‘exploring options to further strengthen lending to the real economy and, in particular, to small and medium-sized enterprises,’ and it seems as though the central bank will continue to embark on its easing cycle over the coming months as the region struggles to return to growth.
Asmussen Says Long Phase of Low Interest Rates Carries Risks
European Central Bank Executive Board member Joerg Asmussen said policy makers should be aware of the risks related to keeping interest rates low for an extended period of time.
Profits are up, but low interest rates put pressure on banks
St. Louis Post-Dispatch
After some dismal performances during the economic downturn, most local banks are growing profits again.
The more than 80 locally chartered retail banks and thrifts in the St. Louis region reported $77.2 million in profits in the first quarter that ended March 31, up from a $60.6 million profit in the first quarter of 2012, according to a summary of bank performances by the Federal Reserve Bank of St. Louis released this week.
How bond investors can avoid becoming losers
The 10-year Treasury has recently been yielding between 1.5% and 2%. Short-term Treasury interest rates are near zero. Even if inflation stays at 2% over the next decade (the informal target of the Federal Reserve), government bonds will provide negative real (after inflation) rates of return.
Federal Reserve Cites Bank of Montreal Branch for Money-Laundering Deficiencies
Dow Jones Newswires (via Fox Business)
U.S. regulators Friday ordered Bank of Montreal (BMO, BMO.T) to strengthen its anti-money-laundering programs, citing deficiencies in its U.S. subsidiary’s efforts at risk management and compliance with the Bank Secrecy Act.
Banks lift FTSE to 5.5-year highs
Alistair Smout, Reuters
The FTSE top share index hit fresh five and a half year highs on Friday, as banks were buoyed by an upgrade, the prospect of the end of state ownership in the sector and rotation out of defensive stocks.
Federal Reserve: rising inequality jeopardizes economic recovery
A top ranking member of the United States Federal Reserve cautioned economists this week that growing inequality within the US was worsening the odds of a quick return to the conditions of the pre-recession days.
Exchanges, Clearing Houses & MTFs
ICE Clear Europe Named 2013 Clearing House of the Year by Energy Risk Magazine
Press Release (ICE)
IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, announced today that ICE Clear Europe has been named Clearing House of the Year for 2013 by Energy Risk magazine.
CFTC Approves SEF Rules and Swaps Block Rule
On Thursday the CFTC approved the Swaps Block Rule, the Made Available to Trade Rule, the SEF rules, and the Interpretive Guidance and Policy Statement on Disruptive Practices.
Big Banks Losing Grip on Derivatives
Unless you’re employed by a derivatives trading desk at a large bank, here’s some good news: The derivatives cabal is slowly but surely headed for a break-up.
EURO GOVT-ECB rate cut talk lifts Bunds to one-week high
German Bunds hit one-week highs on Friday, with traders citing talk the European Central Bank was checking with some banks whether they were ready for a potential cut in its deposit rate to below zero.
Brazil central bank pledges to bring down inflation this year
Brazil’s central bank chief Alexandre Tombini on Thursday pledged to bring inflation lower this year and next, suggesting a more aggressive monetary tightening stance that sent interest rate futures rallying.
Aust bonds prices move higher
The West Australian
Australian bond futures prices are higher after disappointing US economic data saw Treasury yields fall.
Interest rates hit historic low following Central Bank decision
The Journal of Turkish Weekly
Turkey’s bond yield faced a fall to its historical low in response to central Bank’s decision to cut all three of its main interest rates by 50 basis points yesterday in an attempt to stimulate the faltering economy and guard against lira appreciation.
Mexico Grows Less Than Forecast Reinforcing Rate Cut Outlook
Mexico’s economy grew less than analysts expected in the first quarter, fueling bets policy makers will cut interest rates again this year.