For those of us on this side of the
Atlantic, who might be forgiven for taking at least some of their impressions
of US political / economic life from the hugely popular “House of Cards” series,
featuring that most versatile of actors, Kevin Spacey, the testimony of Janet
Yellen, chair of the Federal Open Market Committee (FOMC) to the new chairman
of the Banking, Housing and Urban Affairs committee and his colleagues, was
just a little underwhelming.
Apart from lecturing the foremost
economist in the western world on the various methodologies for measuring
inflation (talk about teaching your grandmother how to suck eggs), and paddling
their own and their party’s current favourite hobbyhorse, Federal Reserve transparency,
or the lack of it, the questioning members gave Ms. Yellen little scope to
enlighten the rest of the world about the matter that exercises us, the probable
timing of core interest rate rises in the US. This is now, officially, to be
dealt with on a meeting to meeting basis.
The EURUSD pair oscillated around
somewhat during the testimony, and then settled pretty much where it had been
to begin with. Ms. Yellen testifies again today, but more of the same is
expected.
Is
Greece off the agenda, for now?
The Greek government has received approval
from the finance ministers of the Eurozone for an extension of its bailout, but
this is bound around with lots of concerns about a lack of specificity on the
proposals being made by Greece for compliance, and the need to have them
implemented before they cash is actually paid over. Up front and centre in the
voicing of these concerns is Christine Lagarde, managing director of the IMF,
one of the bodies that the new Greek government promised their supporters
before the election they would have nothing more to do with.
The European Central Bank and the
Commission itself, the other members of the hated troika, are also flexing their
muscles. As we said previously, when you are in negotiations, it is vital that
you know where the power resides.
No comments:
Post a Comment