LINK

Very interesting minutes IMO.

There was the usual talk of the economic outlook from an inflation and unemployment outlooks.

The interesting parts included talk on foreign currency operations (read foreign currency purchases and liquidity swaps) and RRP's (talk of removing limits etc).

ETA: The comments on foreign currency operations make it sound like the system got to close for comfort to having liquidity issues when the Swiss removed the franc peg to the Euro.

This post was edited on 2/18/15 at 4:05 pm

1 ...

Report Post

Posted by Iowa Golfer

Heaven

Member since Dec 2013

10229 posts

Posted on 2/18/15 at 4:14 pm to LSU0358

I had read this. Interesting. I'm not sure what some of it means, but I do follow swaps closely as I'm trying to learn more about them. Not necessarily currency swaps, but more when larger producers of commodities enter in to them. Currency and commodity swaps aren't exactly the same, but mostly the same risk management concepts at play.

1 ...

Report Post

Posted by LSU0358

Member since Jan 2005

7918 posts

Posted on 2/18/15 at 4:40 pm to Iowa Golfer

My understanding is pretty basic, and I obviously won't be trading any RRP's, etc. Looks to me like the RRP's will be used to set floors in the interest rate markets and the swaps are for making sure liquidity doesn't dry up. Also, looks to me like the likelihood of an interest rate increase this summer went down.

1 ...

Report Post

Posted by Iowa Golfer

Heaven

Member since Dec 2013

10229 posts

Posted on 2/18/15 at 5:15 pm to LSU0358

I think maybe. Although you wouldn't have reason to believe that in my area. 3.9% unemployment and fairly robust housing market.

Strange recovery, or whatever the talking points are today.

Page 1