Tag: fiscal 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...
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,...
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...
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...
Janet Yellen Should Focus On HOPE
U.S. Treasury Secretary Janet Yellen recently stated: “You don’t have a recession when you have the lowest unemployment rate in 53 years.” Let’s HOPE she...
One Monetary Policy Fits All
In Part one of this series, Our Currency The World’s Problem, we discuss the vital role the U.S. dollar plays in the global economy. With...
Persistent Inflation Is Scaring The Federal Reserve
The markets are now betting that inflation will soon subside, allowing the Fed to pivot. But, if inflation proves persistent and not transitory, the...
The Federal Reserve’s Predicament: The Trolley Car Problem (Part 1)
An unstoppable trolley car is barreling down the track. As the switchman, you stand at the junction where the track branches into two and...
Don’t Fight The Fed
If we could only impart one bit of wisdom to our readers about today’s market it is “don’t fight the Fed.“
Unbeknownst to many investors,...
