•
St. Louis Fed President Bullard suggests
delaying the end of QE
– The same
guy who forecast that they will raise rates in Q1 2015 (he still is)
– He’s
concerned though that inflation expectations are turning lower in the US
– Comments
show Fed’s willingness to support economy, boost markets
•
ECB’s Nowotny on the other hand sees no need
to hurry
– Admits
that Eurozone economy “shows clear signs of weakening”
– Says
expectations of large-scale ABS purchases are “exaggerated,” won’t start until
December at the earliest
– Despite
soaring peripheral yields, German yields near Japan levels, stocks tanking
•
Market demanding ECB do something, but no
response; Fed has to support global economy = stronger USD as money flows to US
•
Oil rebounds on thoughts that OPEC will
restrict supply
– OPEC
members are virtually at war with each other; I can’t see them cooperating
– I expect
further declines
•
Today:
– Eurozone: Four ECB
speakers, including Weidmann and Nowotny again
– US: Fed
Chair Yellen to speak on inequality; housing starts & building permits for
Sep forecast to rise, which would further support USD
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