US Economy

Today was Ben Bernanke’s last press conference as FOMC chairman (he has one meeting yet to go).

The mystery is resolved in the affirmative.

Last night’s soft US inflation print dented taper prospects. From the BLS: The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in November on a seasonally adjusted basis, the U.S.

The great mystery of our time deepens daily.

From our Larry today: In the past decade, before the crisis, bubbles and loose credit were only sufficient to drive moderate growth Is it possible that the US and other major global economies might not return to full employment and strong growth without the help of unconventional policy support?

From the FT: Republicans are gearing up for a new fight with President Barack Obama over the need to lift America’s borrowing limit early next year, raising concerns that the fiscal truce established in last week’s bipartisan budget deal may be shortlived.

Courtesy of Calculated Risk, here are some taper previews.

By Leith van Onselen Dave Simon, writer of my all-time favourite US TV show, The Wire, has delivered a cracking speech about the divide between rich and poor in America and how capitalism has lost sight of its social compact.

Find below the latest from Westpac’s Elliot Clarke on the taper: A 6 December Bloomberg poll of US economists showed 34% expect an initial taper at the December meeting and a further 26% anticipate a January move.

There’s a mini taper panic on.

A series of articles last night in the US suggest a Budget deal is imminent.

From Bloomie Friday: The share of economists predicting the Federal Reserve will reduce bond buying in December doubled after a government report showed back-to-back monthly payroll gains of 200,000 or more for the first time in almost a year.

A couple of takes on tonight’s all important US employment numbers.

More from Eliott Clarke of Westpac today on why QE is dangerous road: Each month, the ISM indexes are amongst the most watched and reported market releases.

Deutsche  has a new note this morning asking this question and the answer is discomforting: Fed policy/change in fixed income flows could be key driver for bank stocks While the timing is uncertain, most expect the Fed to slow its bond purchase program soon (i.e. taper) and will likely eventually stop it altogether.

Last night it was taper on so far as markets are concerned.

Cross-posted from Naked Capitalism.

Last night’s US data has upset markets.

Cross-posted from Peter Schiff at Euro Pacific Capital Herd mentality can be as frustrating as it is inexplicable.

Following on from this morning’s post on how Wall St has re-inflated US housing, here is Westpac’s Elliot Clarke on the role of investors in US housing.

Another taper day on Wall St.

By Laura Gottesdiener, a journalist and the author of A Dream Foreclosed: Black America and the Fight for a Place to Call Home, published in August by Zuccotti Park Press.