The value of the US dollar continues to go down. A US Dollar costs just over $1.1900 to purchase one Euro.
The Wall Street Journal publishes two, dollar index numbers; on
Monday morning the US dollar index was at 92.4. The dollar indes had not
been this low since January 2015.
The second on or WSJ dollar index was at 85.54 and again we have to go back to January 2015 to find such a low numbers.
Concerns have been expressed that money is leaving the United States and moving out to other places in the world in particular to Europe.
The interesting thing is that nothing earthshattering came out of the recent meeting of world central bankers in Jackson Hole, Wyoming. Fed-Reserve Chair Janet Yellen spoke about not pushing back recent bank re-regulation and Mario Draghi, Head of the European Central Bank spoke about not going back to a world of protectionism.
It seemed as if these central bankers were very aware of how fragile global financial markets are at this time and really went out of their way to avoid getting into any discussion that might set off major any major movements either up or down.
One ounce of gold on the morning of August 28 cost over $1,300. Around the time that President Trump was elected, an ounce of gold cost approximately $1,225.
Right now the biggest concern that now seems to be weighing on our minds is the political risk that now seems to be buzzing around in every investors’ mind.
The first thing that struck us over the last week is the debate over the US debt ceiling that must be decided upon by the end of September. The other factor that seems to be on investors’ minds is squarely on the Federal Reserve System.
Three things we need to consider here: one, the “forward guidance” given to the markets by the Fed was that there would likely be another increase in its target range for the federal funds rate this December.
Even though this was the guidance in a recent poll, “investors see only a 42% chance that the Fed sticks to its projection for another rate-increase this year….”
Since the Fed ended its third round of quantitative easing, in October 2014, Federal Reserve officials have only used other tools such as repurchase agreements and term deposits, to manage Federal Reserve operations.
Three and this is no small consideration is of course filling of the position of Chair of the Board of Governors of the Federal Reserve. Current Chair Janet Yellen’s term comes to an end in February 2018.
Most likely to secede Ms. Yellen is Gary Cohn, the head of President Trump’s National Economic Council and is currently being touted as the leading candidate to take over once Ms. Yellen’s term comes to an end.
The second on or WSJ dollar index was at 85.54 and again we have to go back to January 2015 to find such a low numbers.
Concerns have been expressed that money is leaving the United States and moving out to other places in the world in particular to Europe.
The interesting thing is that nothing earthshattering came out of the recent meeting of world central bankers in Jackson Hole, Wyoming. Fed-Reserve Chair Janet Yellen spoke about not pushing back recent bank re-regulation and Mario Draghi, Head of the European Central Bank spoke about not going back to a world of protectionism.
It seemed as if these central bankers were very aware of how fragile global financial markets are at this time and really went out of their way to avoid getting into any discussion that might set off major any major movements either up or down.
One ounce of gold on the morning of August 28 cost over $1,300. Around the time that President Trump was elected, an ounce of gold cost approximately $1,225.
Right now the biggest concern that now seems to be weighing on our minds is the political risk that now seems to be buzzing around in every investors’ mind.
The first thing that struck us over the last week is the debate over the US debt ceiling that must be decided upon by the end of September. The other factor that seems to be on investors’ minds is squarely on the Federal Reserve System.
Three things we need to consider here: one, the “forward guidance” given to the markets by the Fed was that there would likely be another increase in its target range for the federal funds rate this December.
Even though this was the guidance in a recent poll, “investors see only a 42% chance that the Fed sticks to its projection for another rate-increase this year….”
Since the Fed ended its third round of quantitative easing, in October 2014, Federal Reserve officials have only used other tools such as repurchase agreements and term deposits, to manage Federal Reserve operations.
Three and this is no small consideration is of course filling of the position of Chair of the Board of Governors of the Federal Reserve. Current Chair Janet Yellen’s term comes to an end in February 2018.
Most likely to secede Ms. Yellen is Gary Cohn, the head of President Trump’s National Economic Council and is currently being touted as the leading candidate to take over once Ms. Yellen’s term comes to an end.
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