Key takeaways: What happened? President Donald Trump nominated Jerome Powell to replace Janet Yellen as the chair of the Federal Reserve Powell is a choice for policy continuity: he will favor the same gradual approach to monetary tightening pursued by Yellen…
Emerging Market Implications of Tighter US Monetary Policy
June 29, 2017 - This post was written by Cailey Stevens, Senior Analyst, and Josh Ashkinaze, Research Intern At their June meeting the Federal Reserve (Fed) raised the target for the Federal Funds Rate (FFR) to 1-1.25% and announced plans to…
Dimming prospects for US economic growth due to Trump’s legislative false-start
Since the Republican house leadership failed to repeal and replace Obamacare, emerging-market executives (and US country managers) have begun to question the Trump administration’s push for growth-boosting legislation in the US. Failure to pass this legislation would have significant ramifications…
Expect a Fed Rate Hike in March
Throughout February, Fed officials increasingly signaled the probability of a rate hike at the March Federal Open Market Committee (FOMC) meeting, scheduled for March 14-15. During her semi-annual congressional testimony, Fed Chair Janet Yellen warned that it would be “unwise”…
It’s President Trump. What’s next for emerging markets?
Populist/nationalist sentiment has shocked the establishment in one of the world’s great democracies. White working-class, rural, and suburban voters expressed deep disaffection from America’s elites by turning out in force to support Donald Trump, a businessman with no previous government…
Markets Must Expect Further Tightening
The March 4 U.S. jobs report was exceptionally strong and should be viewed as evidence that financial markets under-appreciate the case for further monetary tightening. With a FOMC meeting this week, financial markets run the risk of being caught on…
Don’t Drive at Night without Headlights: How Econometrics Can Illuminate the Economic Roadway
The United States Federal Reserve (Fed) is charged with driving some of the most important monetary policies for the global marketplace, with implications spanning both developed and emerging economies. Collectively, the Fed has some of the brightest economists, combining both…