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Last week I wrote a post criticizing Fed chair Janet Yellen for apparently becoming a "stock picker". Later later in the week she spoke before the US House Financial Services Committee in Washington she seemed to tone down a bit her "stock picking" comments, but she nonetheless commented on the general valuation of the US stock market.
This is ECB's chief economist Peter Praet in an interview with Les Echos:
In country after country it is now becoming clear that we are heading for outright deflation. This is particularly the case in Europe - both inside and outside the euro area - where most central banks are failing to keep inflation close to their own announced inflation targets.
David Beckworth just sent me a new paper - Inflation Targeting: A Monetary Policy Regime Whose Time Has Come and Gone - he has written on why it is time to say goodbye to inflation targeting.
On 3 July the Swedish central bank, Riksbanken, cut its key policy rate by 50bp to 0.25%. Most analysts - and the markets - were taken by surprise by this decision. It was particularly surprising as Riksbanken’s governor Stefan Ingves had been voted down by a majority of Riksbanken's board.
Today is the day. July 3 2014. Robert Hetzel is turning 70 today. Happy birthday Bob! I hope you will have a great day with your wife Mary and the rest of your family.
In a very surprising move the Swedish Riksbank this morning cut its key policy rate by 50bp to 0.25%. It was about time! The Riksbank has for a very long time undershot its 2% inflation target and inflation expectations have consistently been below 2% for a long time as well.