Browsing all articles tagged with Ben Bernanke
May
25

Gold Fall, however 2.15 percent Weekly Rise Biggest in a Month

Precious metal turned modestly lower on Friday as some players exited positions ahead of a long US weekend however registered its largest weekly percentage gain in a month, supported by a fall in stock markets and a softer US dollar.

Comments from a Federal Reserve official that dampened talk the US central bank is set to restrain monetary stimulus also underpinned yellow metal prices, which stuck to a fairly tight range.

Spot gold was down 0.23 percent at $1,387.51 per ounce by 2:37 EDT (1837 GMT), slightly lower than $1,390.40 late on Thursday. It remained up 2.15 percent on the week, its largest weekly rise since late April.

COMEX June gold futures closed at $1,386.6 per ounce, drop $5.2 or 0.37 percent and held about those levels in after-hours business.

Bullion got a boost this week from declining equity markets, which in Europe on Thursday posted their largest one day drop in nearly a year. On Friday, US stocks knock down for a third day, putting indexes on track for their first negative week since mid-April.

Robin Bhar, metals analyst at Societe Generale Group in London, a weaker greenback combined with continued QE, some physical buying at the lower levels out to China in particular all of those factors have helped precious metal in the last few days.

QE refers to quantitative easing, or the Federal Reserve’s program of buying almost $85 billion per month in debt to keep US interest rates low and stimulate the economy.

The US dollar extended its decline against the yen and was on track for its largest weekly loss in three years against the Japanese currency. The euro climbed 0.7 percent this week against the dollar its first weekly addition in three periods.

During the US session, precious metal ventured into negative regions with some players reluctant to hang onto a long gold position over the extended Memorial Day weekend in the US, given the newest uncertainty about Federal Reserve policy.

Speculation the Fed would scale back its monetary easing program evaluate on yellow metal this week after Fed Chairman Ben Bernanke stated the central bank could start scaling back its $85 billion in monthly bond purchases in the next few meetings.

But, St. Louis Fed President James Bullard stated on Friday that US inflation would have to pick up before he voted to scale back stimulus.

Bhar said there’s a lot of uncertainty, there’s still no better than 50/50 chance that the Fed will unwind its stimulus or that the economy performs as they expect it will.

Mar
28

Federal Reserve Doves In No Rush To Scale Back Asset Purchases

Primary supporters of the Fed’s bond buying program are not rushing to scale back the swiftness of purchases as the job market improves.

Charles Evans, the president of the Chicago Federal Reserve Bank and a leading architect of the Fed’s specially loose policy, advice a go-slow approach to making any alteration to the $85 billion per month purchases of mortgage and Treasury’s backed securities.

Charles Evans further said that he assumed this is the summit where we have to be patient and let our policies work.

He further said that he prefer and suppose it is best that we carry on to provide strong confidence that we are going to be doing appropriate accommodative policies to get the economy going another time.

Fed will have to have assured that the economy was on solid footing in the second half of the year prior to changing policy. That could simply mean that we require to work our way through the second half prior to we have sufficient confidence that growth is strong enough.

Some other Fed officials are excited for the Fed to diminish the asset purchases. A few believe the Fed should start narrowing as soon as possible.

The Fed is currently buying $40 billion of mortgage-backed securities and $45 billion in long-term Treasury’s per month. Following a two day conference previous week, Ben Bernanke, Fed Chairman said that the Fed wanted to be convinced that current improvement in the labor market was sustainable prior to imitating the purchases.

William Dudley, the president of the New York Fed said that he expected the fed would ultimately scale back the speed of the purchases.

Although Evans argued that the asset purchases were helping the economy. He can not perceive that those are the bound for doing less.  He want to be really careful regarding the signal that reducing bond buying would be.

Evans stated that he was open-minded and a couple of months of job growth above 300,000 would get his concentration and in February, 236,000 jobs were created.

Mar
27

Two Democrats ask Fed, OCC for Conference On Foreclosure Resolution

Two Democratic officials on Monday stepped up their analysis of how supervisor’s handled a botched reconsider of precedent home mortgage foreclosures, asked for a conference with regulatory officials because they seek further information regarding the reviews.

The Office of the Comptroller of the Currency and the Federal Reserve reached conclusions that worth about $9.3 billion with 13 banks former this year to end case-by-case reviews of whether they had wrongly detained homes.

Elizabeth Warren, Senator of Massachusetts who sits on the banking committee, and Elijah Cummings, Representative of Maryland who is the top Democrat on the House Oversight Committee invite regulators for more information in January regarding the reviews following the resolutions were announced.

The officials stated the public needed to recognize more regarding the process in order to trust it.

They are Unsatisfied with the reply they received from the OCC and the Fed on Friday, the pair on Monday required further information and a personal briefing on the significance of their requests.

Some officials wrote that the illegal activity should not be protected by regulators as if it constitutes trade secrets or proprietary information. They persist to believe transparency is critical around the procedure of the review and settlement processes.

The agreement proved contentious as they ended reviews that had already cost the banks some $2 billion however had not yet resulted in any relief to consumers. Banks including JPMorgan Chase & Co, Bank of America Corp and Wells Fargos were part of the reviews.

The organizations have provided slight information regarding what those reviews produced and how the experts who performed the reviews were monitored.

Ben Bernanke the Fed Chairman and Thomas Curry the Comptroller of the Currency stated in their letter on Friday that the OCC and the Fed plan to make further information public, such as the findings of reviews and the costs linked with them.

Mar
15

Federal Reserve To Hold Course On Stimulus Despite Debate Regarding Risks

Federal Reserve officials will spend much of a conferences during coming week debating the possible risks from the central bank’s stimulus plan, however Chairman Ben Bernanke has previously signaled he believes the costs of inaction are even superior.

The US central bank seems to keep buying $85 billion a month in Treasury bonds and mortgage in an effort to support investment and strengthen a weak economic recovery.

A push of current statistics, from manufacturing and retail sales to employment, has exposed that the economy gathering some steam. Still the unemployment rate remains disturbingly high at 7.7 percent, as low inflation makes policymakers comfortable that there is a lot of scope to let the economy run.

Chairman Ben Bernanke said on March 1 that in the light of the reasonable pace of the recovery and the continued high level of economic limps, dialing back accommodation with the goal to prevent unnecessary risk taking in some areas create its own risks to development, price stability and financial stability.

The US central bank will expectedly nod to the recovering economic conditions when it concerns a report at 2 p.m. (1800 GMT) on Wednesday at the end of its two day conference. In prediction complementary the declaration, it is expected to smack up projections for economic growth and lower forecasts for unemployment.

However it is also possible to renovate its promise to keep buying bonds until the employment positions are improves considerably.

It is a view that is not without resistance within the central bank. A number of Fed officials have become ever more vocal regarding the program’s possible side effects, including the likelihood of financial instability and asset bubbles or future inflation.

Mar
13

American economy is sluggish and Fed Chairman Ben Bernanke is the accelerant

It look similar to just like yesterday Bernanke adviser Alan Greenspan confess to Congress that he found a flaw in the free market principles that drove America’s monetary policy for his term as Fed chairman, America to figure out that self regulated free markets did not work.

Unfortunately nothing changed and Greenspan handed off to Bernanke. And that same faulty principle is still misleading world’s 192 central banks and the America’s central bank headlong into another disaster greater than 2008. And the chain of command over the confirmation is obvious, Greenspan begning with Reagan. Then Bernanke with George W. Bush accumulating further eight years of fiscal policies and failed monetary.

Currently, Bernanke and Obama policies prolonged, favoring banks with their high pace, cheap money printing presses. And if America’s speed up debt is the metric, historians are previously judge Greenspan strictly. In future, history will be even firm on Bernanke, He never learned the lesson that Greenspan’s failed free market ideology harshly smashed the American economy.

Hiding behind the fantasy of today’s current stock market records is an economy and markets that are highest, close to crashing. However their leaders are in rejection. A new economic bubble is blowing greater than the 1990s, greater than Wall Street’s credit reduced, both driven by the same defective monetary principles that’s now a bug spreading across America’s political system.

The Institute of International Finance which groups 450 banks stated that if central banks carry on to flood money into the global economy then any outlook bid to get it under control could itself weaken the financial system and quantitative easing, very low interest rates, cannot stay forever, however the risk is that financial markets have become captivated to them.

Mar
12

Gold Sticks To Range As Equity Meeting saps Interest

Yellow metal floats above $1,580 per ounce on Tuesday, as an superior economic prospect give slight incentive to break out of recent ranges, although a record setting equity rally tempted investors away from the under performing gold.

The OECD said on Monday that the economic prospect in major industrialized economies is recovering with the Japan and US leading the way, adding that actions in the euro zone was also picking up.

The US budget saga continues, With modest outlook of getting rid of the automatic spending cuts that kicked in on March 1, the White House and the US Congress will move on to greater budget battles this week as duelling Democratic and Republican proposals land in the House of Representatives and the Senate.

The Japanese government’s preference to lead the country’s central bank promised on Monday to move rapidly to implement new monetary stimulus to boost the struggling economy, a case highlighted by a surprisingly sharp fall in a gauge of capital investment.

Spot gold was little changed at $1,580.81 per ounce by 0034 GMT. The yellow metal has been trading among $1,560 to $1,585 per ounce since the start of March.

US gold climbed up 0.1 percent to $1,580.10 per ounce.

The market is demanding to reconcile expectation’s of sustained improvement in the employment image with recent comments from Fed Vice Chair Janet Yellen and US Federal Reserve Chairman Ben Bernanke said Peter Grant, chief market analyst at USA Gold. Their current comments indicated that the central bank will keep its foot on the monetary gas pedal well into any revival.

Gold future for April delivery rose $1.10, or 0.1%, to settle at $1,578 per ounce on the Comex division of the New York Mercantile Exchange, following trading among $1,574.50 and $1,582.50 per ounce.

Mar
2

Ben Bernanke Said Premature Fed Recoil could short Course recovery

Ben Bernanke, the chairman of the Federal Reserve stated on Friday that pulling back on violent policy measures too rapidly would create a real risk of damaging a still delicate recovery.

There has been some dissimilarity within the Fed of whether the US central bank’s bond buying program, which is planned to push down long term interest rates should be segmented out.

Jeremy Stein, Fed Board Governor argued recently there were symbols of overheating in some financial markets and that the central bank should believed in using monetary policy to address such risks if they continue.

The Fed chief Ben Bernanke was not convinced, saying that even for the reason of financial stability, a persistence of the central bank’s aggressive incentive, conducted through purchases of mortgage securities and Treasury, leftovers the best approach.

Bernanke said in remarks, in light of the reasonable pace of the recovery and the sustained high level of economic loose, dialing back adjustment with the goal of preventing extreme risk taking in some areas poses its own risks to development, financial stability, price stability.

In reaction to the financial crisis and deep recession of 2007-2009, the Fed not only cut official rates to effectively zero, however also bought more than $2.5 trillion in assets in an effort to keep long term rates low. Still economic growth leftovers submissive and is expected to register just 2 percent this year, although the jobless rate remains high at 7.9 percent currently.

Bernanke said premature rate boost would carry a high risk of short circuiting the revival, perhaps leading ironically enough to an even longer time of low long term rates.

He illustrious that a stimulative monetary policy was simply a reaction to economic conditions, rather than any effort to keep rates unnaturally low to inflate asset prices

Policymakers are cognizant of potential risks to financial stability, although indicating a preference for employing authoritarian and supervisory tools to mitigate any potential fallout from the Fed’s low rate policy.

 

 

Feb
28

Gold Heads for greatest run of monthly Fall in 16 years

Yellow metal traded little changed on Thursday, however was headed for its greatest enlarged of monthly turn down in more than 16 years as its safe haven demand has faint with the global economy showing signs of revival.

It slipped almost 1 percent in the last session, wiping out Tuesday’s addition that were fulled by US Federal Reserve Chairman Ben Bernanke’s encouragement of the bank’s monetary stimulus programmed.

Holdings of SPDR Gold Trust, the world’s largest gold backed exchange traded fund, fall to a more than six month low of 1,258.4 tonnes on Feb. 27. The holdings had been declining for seven sessions straight, marking the greatest losing run since the fund was incepted in 2004.

US economic statistics was upbeat. A gauge of planned US business spending testimony its biggest augmented in more than a year in January, signifying growing confidence in the durability of the economic recovery.

The US jobless rate is doubtful to reach more normal levels for several years, Federal Reserve Chairman Ben Bernanke stated on Wednesday as he defended the central bank’s monetary stimulus in the second day of indication in front of the Congress.

Positions hardened on Wednesday among US Republican congressional sledders and President Barack Obama over the budget crisis even as they arranged to hold previous channel talks to prevent harsh automatic spending cuts opening this week.

Spot gold traded little changed at $1,597.60 per ounce by 0048 GMT, on track for a monthly drop of 4 percent.

US gold climbed up 0.1 percent to $1,597.80 per ounce.

US stocks increased on Wednesday, with major indexes posting their greatest daily addition since early January, as Federal Reserve Chairman Ben Bernanke remained committed in supporting the Fed’s stimulus policy and statistics pointed to economic improvement.

Feb
27

Gold Seized About 2 week Elevated As Ben Bernanke Backs Incentive

Precious Gold traded flat on Wednesday, settle on near a 2 week high strike in the last session as Federal Reserve Chairman Ben Bernanke protected the bank’s monetary policy, lending support to yellow metal as a hedge verses central banks’ cash printing.

Federal Reserve Chairman Ben Bernanke strongly defended the US central bank’s monetary incentive prior to Congress on Tuesday, easing financial market doubts over a possible early recoil from bond purchases.

US home prices closed out 2012 with the largest annual addition in more than six years as sales of new homes spiked in January, the hottest sign that the housing market was on the patch up, statistics demonstrate on Tuesday.

Italy’s political parties hunted for a way self-assured on Tuesday subsequent to an uncertain election gave none of them a parliamentary majority and threatened prolonged instability and a renewal of the European financial crisis.

Goldman Sachs cut its 2013 gold price predicted to $1,600  per ounce from $1,810 per ounce, stating the precious metal’s current price slump and an boost in US real interest rates have led it to bring forward its projections for a turn down in the yellow metal.

Spot gold was little changed at $1,613.61 per ounce by 0028 GMT, following trouncing a 2 week high of $1,619.66 per ounce. It increased 1.2 percent on Tuesday, its major daily addition in three months.

US gold slumped down 0.1 percent to $1,613.30 per ounce.

In addition, remarks from Federal Reserve chairman Ben Bernanke relieved investors that the central bank was not about to recoil on its asset buying program. Fed bond buying has formerly supported bullion.

Feb
26

Federal Reserve Chairman Ben Bernanke To Face Fed Critics In Testimony To Congress

Bernanke face the first of two days of congressional demonstration that will subject the Fed’s contentious bond buying program to strong scrutiny and measure his confidence in the resilience of the US economy.

Approaching just a week following the Fed’s conference notes sent US stocks reeling by signifying the central bank could pull back its economic incentive earlier than had been expected, and a day following another sharp stock market plunge, investors are sure to hang on every word.

Starting with the US Senate Banking Committee on Tuesday, the scholarly Fed chief will be questioned by some bitter critics of the violent steps he has supporter to encourage growth. On Wednesday, he will emerge prior to the House Financial Services Committee.

Economists at TD Securities in New York stated in a note to clients that his opinion remains that there is still not sufficient growth, that high unemployment is a recurring issue there is not adequate inflation. He will keep the switch to the metal deep into 2013.

The Fed chairman’s equipped testimony is planned to be released at 10 a.m. (1500 GMT) Today, pursue by a lengthy question and answer session. By custom, he will issue the same declaration on Wednesday prior to facing the House panel.

Lawmakers in both chambers will look for his remarks on the possible impact of $85 billion in across the board government spending cuts that are set to take effect on March 1.

Ben Bernanke is expected to repeat his line that the random chopper they take to the budget will hurt the upturn, and disputed that it would be better to cut the deficit over time and avoid the risk of a near term fiscal astonishment.

Lawmakers will also question him regarding the Fed’s bold bond buying program, which has tripled the dimension of the central bank’s balance sheet to $3 trillion since 2008.