Tag Archives: FOMC

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Cumberland Advisors Market Commentary – The FOMC: Whatever (and However Long) It Takes

Author: Robert Eisenbeis, Ph.D., Post Date: June 17, 2020
Market Commentary - Cumberland Advisors - The FOMC Whatever (and However Long) It Takes

To no one’s surprise, the FOMC in its June meeting reaffirmed its 0–25 basis-point target for the federal funds rate. Markets did not react well, especially since the announcement came on the heels of a fairly downbeat assessment by Chairman Powell regarding the expected slow path for the recovery and the problems in the labor […]

Cumberland Advisors Market Commentary – The Fed — What Next?

Author: Robert Eisenbeis, Ph.D., Post Date: February 10, 2020
Cumberland Advisors Market Commentary

With the no-change decision by the FOMC, rendered as the impeachment finale was playing out, and with the next FOMC meeting about a month away, the most important upcoming event for the Fed is Chairman Powell’s semiannual testimony before Congress this week. The Board’s report is already out, and it provides a fairly clear indication […]

Cumberland Advisors Market Commentary – FOMC ZZZZZZZZZZZZ

Author: Robert Eisenbeis, Ph.D., Post Date: December 16, 2019
Federal Reserve - FOMC

“Boring” was how commentators on at least one network characterized the FOMC’s December 11th decision to hold rates constant. It was, in fact, a no-brainer decision given the strong labor market, which created 266 thousand jobs in November; strong consumer spending based upon the Black Friday and Cyber Monday sales data; an unemployment rate at […]

Cumberland Advisors Market Commentary – Overshadowed?

Author: Robert Eisenbeis, Ph.D., Post Date: November 19, 2019
Federal Reserve - FOMC

Public attention this past week was riveted on the impeachment testimony before the House Intelligence Committee, which totally overshadowed Chairman Powell’s semiannual report and two days of testimony to Congress on monetary policy. That outcome is probably not a bad one, since there were no new insights provided nor any clues as to when or […]

What the FOMC Said

Author: Robert Eisenbeis, Ph.D., Post Date: November 1, 2019
Cumberland Advisors' Robert "Bob" Eisenbeis, Ph.D.

Following the FOMC’s announcement of its third consecutive rate cut after its meeting this week, speculation immediately broke out among market participants about whether additional cuts or even rate increases might be on the horizon going into 2020. However, such speculation is probably more noise than substance at this point, since the Committee’s statement was […]

Bloomberg TV – Think the Fed Will Be Pat for a While, Says Cumberland’s Eisenbeis

Author: , Post Date: October 30, 2019
Bloomberg TV - Think the Fed Will Be Pat for a While, Says Cumberland’s Eisenbeis

Bloomberg TV – Daybreak Asia October 30, 2019 Robert Eisenbeis, vice chairman and chief monetary economist at Cumberland Advisors, discusses the potential for another Fed rate cut in December and beyond and his thoughts on communication from the central bank. He speaks on “Bloomberg Daybreak: Asia.” (Source: Bloomberg)   WATCH HERE (or click the embedded […]

Repo Market, Monetary Policy, & Liquidity Discussion – An On-Demand Webinar

Author: Cumberland Advisors, Post Date: October 5, 2019
On-Demand Webinar - How does the Repo Market, Monetary Policy, & a Liquidity crunch affect Financial Markets

In early September 2019 there was an unusual spike in rates in the repurchase (“repo”) market causing a liquidity squeeze on broker-dealers that use repos to finance their portfolios of Treasury and agency securities.  It remains a mystery as to what catalyzed the liquidity squeeze.  The response by the Federal Reserve Bank and market participants […]

Cumberland Advisors Market Commentary – Repos and Reverse Repos

Author: Robert Eisenbeis, Ph.D., Post Date: September 27, 2019
Cumberland Advisors' Robert "Bob" Eisenbeis, Ph.D.

The week of September 16 saw the Federal Reserve Bank of New York inject funds into the repo market in response to an unusual spike in rates that was above the initial target range for the federal funds rate of 2.0–2.25%. (The target rate was lowered to 1.75–2.00% after the close of the FOMC’s meeting […]

Cumberland Advisors Market Commentary – To Pass or Not to Pass (Part 3)

Author: Robert Eisenbeis, Ph.D., Post Date: August 1, 2019
Market Commentary - Robert-Eisenbeis - To Pass or Not to Pass (Part 3)

The FOMC decided to throw a pass by cutting rates; but given the market’s response, it looks like they were tackled for a loss. In Woody Hayes’ parlance, the one positive of a forward pass turned into a negative. Powell attempted to offer three justifications for the policy move: to insure against downside risks, to […]