Tag: monetary policy
Financial Conditions Butt Heads With Borrowing Conditions
At last week’s FOMC meeting, Jerome Powell said, “We think financial conditions are weighing on the economy.”
His comments seem sensible, given the following:
The Fed...
Bonds Like Federal Reserve FOMC Days, But Joy Fades Quickly
Rather than trying to outsmart how the Fed’s policy meetings will affect the markets in the future, why not just let the markets tell...
QE By A Different Name Is Still QE
The Fed added Quantitative Easing (QE) to its monetary policy toolbox in 2008.
At the time, the financial system was imploding. Fed Chair Ben Bernanke...
Liquidity Problems Are Closer Than You Think
In 2019, the Federal Reserve (Fed) cut interest rates and restarted QE despite a healthy economy. Today, inflation is higher than the Fed’s target,...
We Are Not On The 1970s Inflation Rollercoaster
We wrote this four-part inflation series in response to the graph below, implying that prices are on the same inflation roller coaster ride as...
The Government Can’t Afford Higher Interest Rates For Longer, Much Longer
Jerome Powell and his colleagues endlessly reassert their “higher for longer” plan for interest rates. They aim to weaken economic growth, bringing inflation back...
The End of an Era For Stocks, Warns The Fed
A recent whitepaper by the Federal Reserve warns of “significantly lower profit growth and stock returns in the future.” In his article, End of an...
Velocity and Money Supply: Inflation’s Dance Partners
Most people think the nation’s money supply is the sole cause of inflation. They fail to realize inflation has two equal dance partners.
The money...
A Federal Reserve Pivot Is Not Bullish
An old saying cautions one to be careful of what one wishes for. Stock investors wishing for the Federal Reserve to pivot may want...
Aftershocks: Life After Silicon Valley Bank
While headlines of bank failures and bailouts consume the media, few are contemplating the economic and financial aftershocks that will follow.
Hockey great Wayne Gretzky...