{"id":47229,"date":"2019-07-15T14:05:09","date_gmt":"2019-07-15T19:05:09","guid":{"rendered":"https:\/\/olduvai.ca\/?p=47229"},"modified":"2019-07-15T14:05:15","modified_gmt":"2019-07-15T19:05:15","slug":"weekly-commentary-central-banker-to-the-world","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=47229","title":{"rendered":"Weekly Commentary: Central Banker to the World"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"http:\/\/creditbubblebulletin.blogspot.com\/2019\/07\/weekly-commentary-central-banker-to.html\">Weekly Commentary: Central Banker to the World<\/a><\/h3>\n\n\n\n<p>July 11 \u2013 Bloomberg (Rich Miller): \u201cFederal Reserve Chairman Jerome Powell is starting to sound a bit like he\u2019s the world\u2019s central banker. In Congressional testimony this week, he repeatedly cited a slower global economic expansion in laying out the case for easier U.S. monetary policy. \u2018There\u2019s something going on with the growth around the world, particularly around manufacturing and investment and trade,\u2019 he told the House Financial Services Committee\u2026 as he all but promised an interest-rate cut at the end of this month.\u201d<\/p>\n\n\n\n<p>Chairman Powell was decisive. While not directly announcing an imminent cut, he essentially pre-committed to reducing rates at the July 31st meeting. Record stock prices don\u2019t matter. Booming corporate Credit is no issue. June\u2019s big gain in payrolls and a 3.7% unemployment rate are not part of the decision function. A Friday afternoon Bloomberg headline resonated: \u201cA Stock Market Dying to Know What Powell Knows About the Economy.\u201d<\/p>\n\n\n\n<p>The so-called \u201cinsurance\u201d rate cut is all about the global environment, with monetary policy\u2019s traditional domestic focus relegated to history. The reduction will be justified by \u201ccrosscurrents,\u201d \u201cuncertainties\u201d and below-target inflation. But is the global economy really in such bad shape to warrant preemptive monetary stimulus during a period of market ebullience? What Does Powell \u2013 and his cadre of global central bankers &#8211; Know?<\/p>\n\n\n\n<p>China\u2019s GDP is expected to expand between 6.0% and 6.5% this year. While slowing, growth throughout EM is forecast between three and four percent.&nbsp; Nothing to write home about, but euro zone GDP is expected to exceed 1.0% this year. Japan could see 3.0% 2019 GDP growth. Bank American Merrill Lynch today lowered their forecast for 2019 global GDP growth to 3.3% from 3.6%. Deserving of even lower rates and more QE?<\/p>\n\n\n\n<p>\u00a0\u2026click on the above link to read the rest of the article\u2026<br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Weekly Commentary: Central Banker to the World July 11 \u2013 Bloomberg (Rich Miller): \u201cFederal Reserve Chairman Jerome Powell is starting to sound a bit like he\u2019s the world\u2019s central banker. In Congressional testimony this week, he repeatedly cited a slower global economic expansion in laying out the case for easier U.S. monetary policy. \u2018There\u2019s something [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,26270,431,16888,3650],"class_list":["post-47229","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-credit-bubble-buletin","tag-interest-rates","tag-jerome-powell","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47229","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=47229"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47229\/revisions"}],"predecessor-version":[{"id":47230,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47229\/revisions\/47230"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}