Wednesday, July 3, 2013

CNBC's Kelly Evans shares her thoughts on establishing a futures market on the FOMC.

CNBC's Kelly Evans shares her thoughts on establishing a futures market on the FOMC.
 
 
Transcript:
 
what are you watching this tuesday morning? well, as much as you are fascinating with the markets, people want to know what happened. we have been talking about the weird signals coming out from the ma22nd, whether it is a speed up or slowing or square from the fed. ing to bring us to a topic here of what is happening with the prediction market and gdp. can do the gdp bonds, and a lot of people out there will be familiar in terms of this debate with the nominal gdp. since may 22nd, again, some confusion to some extent in markets about whether what we have seen the fed spurring freakout in credit markets or equities or responding to improvement of conditions on the ground. trying to get the signal from the noise here would be much eathere were a place the look to saying that the market participants see the growth and increasing over to the longer term or decreasing? a couple of ways to do that is that you can, again, set up futures in the gdp linked bond or do a prediction market. one of the guys calling for this is noting that if it is done right, the markets, themselves could more smoothly guide the taper and there wouldn't be any friction back and forth between what one group is thinking and another at the fmyc, and another fed notes that without this type of thing in place, we are still flying blind. that certainly seems to be the case thinking about the market activity over to the last six weeks. and guys, the jury is whether this is the right thing for the fed to target gdp instead of inflation, and the tacit market. and there is a strong case for being set up a market to get this information out there, and then we would know with clarity, are we taing about the growth or not. well, to some extent. helping people know what people are thinking. and better than what finesfelt came out. it is better when he is in the journal, and jim, you didn't like the piece? well, what you said is more formative and gun to the head -- and gun to the head may not be the right thing. and his response would be if there is a supply shock here happening to the economy, it is not something that you will necessarily as the fed respond to, but it would help to have clarify from the market itself. i could not agree more.
 
The Transcript could use a bit of work BW
 

4 comments:

  1. This article is mind blowing I read it and enjoyed. I always find this type of article to learn and gather knowledge.

    Elektrownia sloneczna

    ReplyDelete
  2. I like the NGDP futures market idea.

    You know, Thomas Jefferson said the only thing more dangerous than a standing military would be a central bank controlled by bankers.

    He was right.

    ReplyDelete
  3. it is too good from other post really appreciate all recmond all readers comments on post

    eco 365 final exam


    http://eco372finalexam.weebly.com/

    ReplyDelete
  4. It’s great to hear from Kelly, as she has been really lovely to hear from, I usually we got to keep these things on our mind while working. I always love to hear from experts and even at present, I am using OctaFX broker’s daily market news and analysis service, it’s ever easy for me to work with them and it always leads into great profits, so that’s why I am able to work pretty nicely and it leads to serious rewards for me!

    ReplyDelete