Fed Pauses, Evaluates Pandemic Response

Fed Pauses, Evaluates Pandemic Response By Blu Putnam, Chief Economist, CME Group Highlights Fed reduces support for primary bonds dealers as liquidity rebounds. Fed swap lines to central banks drawn down as demand wanes. Did Fed purchase of Treasury notes, bills impact shape of yield curve? Fed activity has substantially changed sentiment in Treasuries market. … Read More

Seven outcomes of the Fed’s pandemic response

Seven outcomes of the Fed’s pandemic response By Blu Putnam, Chief Economist, CME Group Highlights Fed asset purchases dampened volatility in long-term Treasury securities. Sentiment in US Treasuries has shifted from “Anxious” to “Complacent.” Change in sentiment reflects investor confidence in Fed’s actions. Market participants expect Fed to keep rates low for a long time. … Read More

Economic Spotlight: New Zealand and Australia’s Currencies

Economic Spotlight: New Zealand and Australia’s Currencies By Erik Norland, Senior Economist, CME Group Highlights AUD is down 31% vs. USD since 2011, NZD is down 15%. NZD has outpaced AUD amid more robust growth, better export prices. NZD tracks EUR more closely than AUD due to export competitiveness. Interest rates in New Zealand and … Read More

Can the global economy weather the coronavirus storm?

New cases set back recovery, South Africa cuts rates to record low By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group Recovery Setback? Air travel in July was just 40% of pre-pandemic levels. New cases of COVID-19 set back recovery in bar-and-restaurant traffic. Rebound in credit card spending slowed in July as … Read More

Dividends: Short-Term Optimism, Long-Term Concern

View in your browser Dividends: Short-Term Optimism, Long-Term Concern By Blu Putnam, Chief Economist, CME Group Highlights Fed asset purchases support equities, reduce long-term bond yields. Short-term dividend expectations have rebounded with equities. Long-term expectations have flatlined amid economic uncertainty. Can economy make a V-shaped recovery like the equity market? Watch video