Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Axios on your phone

Get breaking news and scoops on the go with the Axios app.

Download for free.

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!
Data: Federal Reserve; Chart: Axios Visuals

Minutes from June's meeting of Fed policymakers was released on Wednesday and showed the central bank is still ready to provide support "for some time" to markets.

Why it matters: With coronavirus cases rising, recent economic data largely moving backwards, and companies' earnings and revenue guidance slipping, the Fed looks to be the driving force behind the march upwards of stock prices.

By the numbers: From February to the end of June, total assets held by the three major central banks (ECB, Fed, BOJ) soared $5.6 trillion to a record $20.1 trillion — with the Fed now holding over $7 trillion, data from Yardeni Research show.

What they're saying: The Fed is using "financial engineering, in a highly levered manner, to indirectly influence equity prices," Vineer Bhansali, CIO of LongTail Alpha, writes for Forbes.

  • “As long as the Fed has the authority to buy assets, print money, and underwrite risk taking, as it currently has, don’t fight the Fed. But be ready to bail out as soon as they start thinking about thinking about raising rates.”

One level deeper: “Today the economy and the markets are driven by the central banks and the coordination with the central government,” Bridgewater Associates founder Ray Dalio said at the Bloomberg Global Asset Owners Forum Thursday.

  • As a result, “capital markets are not free markets allocating resources in traditional ways.”

The big picture: Value metrics like P/E ratios must be re-evaluated in light of the current situation, Ed Yardeni, president and chief investment strategist of Yardeni Research, writes in a note to clients.

  • "What should the forward P/E of the S&P 500 be when the federal funds rate is zero, the 10-year US Treasury bond yield is below 1.00%, and the Fed is providing plenty of liquidity to facilitate the resulting rebalancing from bonds to stocks?"
  • "Frankly, we don’t know the answer to this question, since there is no precedent for the current situation."

Go deeper

Dion Rabouin, author of Markets
Oct 13, 2020 - Economy & Business

Fed Q3 GDP forecasts again diverge widely

Data: Atlanta Fed and New York Fed; Chart: Axios Visuals

The gap between projected GDP growth in the third quarter between the Atlanta Fed's GDPNow forecasting tool and the New York Fed's tool continues to widen.

What it means: Both GDPNow forecasts are driven by economic reports that increase or decrease expected U.S. growth for the quarter.

Dion Rabouin, author of Markets
Oct 13, 2020 - Economy & Business

Global central bankers set the stage for more easy policy

Data: BofA Global Research; Chart: Axios Visuals

Bank of Japan governor Haruhiko Kuroda became the latest central bank chief to tip his hat to the possibility of easier monetary policy in recent weeks, saying during the Institute of International Finance's annual meeting Monday that the BOJ would "not hesitate to take additional easing measures as necessary."

What they're saying: "The BOJ hasn't run out of policy tools," Kuroda added. "We have a lot of policy tools to counter [damage from the pandemic]. We are flexible, innovative when considering measures to take."

Updated 1 hour ago - Sports

Olympics dashboard

🚨: China wins 1st gold of Tokyo Olympics

📺: The Olympic events to watch today

🎾: Athlete spotlight - Naomi Osaka looks to snag gold on home soil

👻: How the no-spectator Olympics could affect the athletes

🇺🇸: "What an honor it is to watch you soar," first lady tells U.S. Olympians

🥇: The six new sports at Tokyo 2020

💉 About 100 U.S. Olympic athletes are unvaccinated

Go deeper: Full Axios coverage