Fed Relies on Forward Guidance – Keeps a “Wait and See” Message

  • Post category:Blog
  • Post comments:0 Comments

The Federal Reserve convened this week for its last meeting in 2020. The Fed didn’t make any significant changes to its policy and provided accommodating forward guidance and some clarity on its asset purchase program. The Fed expects to purchase 80 billion worth of bonds and 40 billion of MRS a month for…

Continue ReadingFed Relies on Forward Guidance – Keeps a “Wait and See” Message

What is keeping up Spain’s Housing Market?

  • Post category:Blog
  • Post comments:0 Comments

The Spanish economy could contract by 13% in 2020 (see IMF June report) and up to 15% (according to Bank of Spain’s risk scenario) amid the adverse economic ramifications of the Covid-19 pandemic. Although the economy continues to struggle, the housing market has yet to show signs of weakness. On the contrary, housing…

Continue ReadingWhat is keeping up Spain’s Housing Market?
Read more about the article Oil remains stable (for now) despite high uncertainty in the horizon
High Price of Oil barrel - 3d

Oil remains stable (for now) despite high uncertainty in the horizon

  • Post category:oil
  • Post comments:0 Comments

Since the negative rates of April, the oil market has partly recovered and settled around $40. The ongoing high uncertainty over demand, along with the changes in production in non-OPEC and OPEC countries, haven’t moved oil from its $40 mark over recent weeks. What’s next for oil?   Oil demand is expected to…

Continue ReadingOil remains stable (for now) despite high uncertainty in the horizon

The Federal Reserve Could Open the Door on Yield Curve Control

  • Post category:Blog
  • Post comments:0 Comments

The COVID-19 pandemic led the Federal Reserve to slash interest rates to the zero lower bound (ZLB), provide support to the repo market, and purchase treasuries and corporate bonds, among other tools it has utilized. While the response of the Fed has helped shore up liquidity in the financial markets, it may need…

Continue ReadingThe Federal Reserve Could Open the Door on Yield Curve Control

Spain’s Economic Woes Could Be Worse Than Currently Projected: Its GDP Could Fall by 20% This Year

  • Post category:Blog
  • Post comments:0 Comments

In a recent report, the IMF predicted Spain’s GDP could contract by 8% in 2020; the Bank of Spain estimates this year’s decline could reach 12.4% if the lockdown lasts 12 weeks (for now, the lockdown is expected to last at least eight weeks). These predictions, while grim, appear to assume a V…

Continue ReadingSpain’s Economic Woes Could Be Worse Than Currently Projected: Its GDP Could Fall by 20% This Year