Tag Archives: Federal Reserve

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Cumberland Advisors Market Commentary – Interest Rates and Yield Curve Control, Part 3

Author: David R. Kotok, Post Date: September 24, 2020

To understand US interest rates and how yield curve control works, it is critical to consider the effects of negative interest rates coupled with yield curve control, as already applied outside the US. We have written several times about the impact of negative interest rate policy (NIRP) on worldwide interest rates. In the current pandemic […]

Cumberland Advisors Market Commentary – Echoes of 1968

Author: David R. Kotok, Post Date: September 6, 2020
Market Commentary - Cumberland Advisors - Echoes of 1968

Brent Donnelly is a good friend and fellow camper at Leen’s Lodge. He is also a highly respected senior FX dealer at HSBC New York and the author of The Art of Currency Trading and the daily FX commentary AM/FX. On September 3, Brent penned “Echoes of ’68,” a thought-provoking comparison of the years 1968 […]

David Kotok on the Markets (Radio)

Author: , Post Date: September 2, 2020
Cumberland's David Kotok on Bloomberg Radio

David Kotok on the Markets (Radio) September 01, 2020 – Running time 09:06 David Kotok, CIO at Cumberland Advisors, discusses his market outlook. He speaks with Bryan Curtis and Paul Allen on Bloomberg Daybreak Asia. LISTEN HERE: https://www.bloomberg.com/news/audio/2020-09-01/david-kotok-on-the-markets-radio NOTE: Links to other websites or electronic media controlled or offered by Third-Parties (non-affiliates of Cumberland Advisors) […]

MarketWatch: The Fed’s new policy may have just ushered in a new era of uncertainty on Wall Street

Author: , Post Date: August 29, 2020
Cumberland Advisors Robert "Bob" Eisenbeis Ph.D. In The NewsCumberland-Advisors-Robert "Bob" Eisenbeis Ph.D. In-The-News

Aug. 29, 2020 By Mark DeCambre Excerpt below. Market volatility may increase without more guidance on how the Fed’s policy will be implemented. As the Fed has put it, “if inflation expectations fall, interest rates would decline too.” And receding interest rates make it difficult for the Fed to use its main tool for managing […]

Cumberland Advisors Market Commentary – FOMC and Revisions to Its Longer-Run Policy Strategy

Author: Robert Eisenbeis, Ph.D., Post Date: August 28, 2020
Market Commentary - Cumberland Advisors - FOMC and Revisions to Its Longer-Run Policy Strategy

On the day of Chairman Powell’s opening speech for this year’s virtual annual Jackson Hole Economic Policy Symposium, hosted by the Kansas City Fed, the Federal Reserve released an update to its January 2012 “Statement on Longer-Run Goals and Monetary Policy Strategy.” This commentary describes the changes in the strategy and discusses what may be […]

Cumberland Advisors Market Commentary – Interest Rates and Yield Curve Control, Part 2

Author: David R. Kotok, Post Date: August 13, 2020
Market Commentary - Cumberland Advisors - Interest Rates and Yield Curve Control, Part 2

This is part 2 in a series on interest rates and yield curve controls. Here’s the link to part 1: https://www.cumber.com/cumberland-advisors-market-commentary-interest-rates-and-yield-curve-control-part-1/ First, we want to thank BCA Research and our friend Caroline Miller, Chief Strategist at BCA, for permission to share their charts. At Cumberland, we use BCA Research. My colleague John Mousseau and I […]

Cumberland Advisors Market Commentary – Interest Rates and Yield Curve Control, Part 1

Author: David R. Kotok, Post Date: August 10, 2020
Market Commentary - Cumberland Advisors - Interest Rates and Yield Curve Control, Part 1

“The Trimmed Mean PCE inflation rate is an alternative measure of core inflation in the price index for personal consumption expenditures (PCE). It is calculated by staff at the Dallas Fed, using data from the Bureau of Economic Analysis (BEA).” Through June 2020, “The Trimmed Mean PCE inflation rate over the 12 months ending in […]

Barron’s – July Jobs Report: Better Than Expected, Better Than Feared

Author: , Post Date: August 7, 2020
Cumberland Advisors William Bill Witherell Ph.D.

July Jobs Report: Better Than Expected, Better Than Feared Excerpt from Barron’s – August 07, 2020 A portion of William Witherell, Ph.D.’s commentary, Why Investors Are Looking at Taiwan, was incorporated into Barron’s collective piece, “July Jobs Report: Better Than Expected, Better Than Feared“. This commentary was issued recently by money managers, research firms, and […]

Favor Asia Economies That Are Managing Pandemic: Kotok (Radio)

Author: , Post Date: July 30, 2020
Cumberland's David Kotok on Bloomberg Radio

Favor Asia Economies That Are Managing Pandemic: Kotok (Radio) July 30, 2020 – Running time 06:26 David Kotok, Chairman & Chief Investment Officer at Cumberland Advisors, on fiscal stimulus, the pandemic, and current investment outlook. Hosted by Paul Sweeney and Vonnie Quinn. LISTEN HERE: https://www.bloomberg.com/news/audio/2020-07-30/favor-asia-economies-that-are-managing-pandemic-kotok-radio NOTE: Links to other websites or electronic media controlled or […]

Cumberland Advisors Market Commentary – A Modest Proposal

Author: Robert Eisenbeis, Ph.D., Post Date: July 28, 2020
Market Commentary - Cumberland Advisors - A Modest Proposal

“In practice, the Fed has never adopted operating procedures designed to control reserves in order to use the money multiplier relationship to control deposits.” (Goodfriend and Hargraves, “A Historical Assessment of the Rationales and Functions of Reserve Requirements,” Source: https://www.richmondfed.org) In response to the pandemic crisis, the Federal Reserve has cut the federal funds rate […]