Today’s Wall Street Journal reported that Donald Trump’s allies are quietly drafting proposals that would attempt to erode the Federal Reserve’s independence if he wins a second term. That said, his advisors are divided [...]
The Treasury Department released data on Oct. 4 that showed America’s national debt exceeded $31 trillion for the first time. Our outstanding debt raises major fiscal concerns because low interest costs to fund the debt are [...]
As the world’s most important currency, the U.S. dollar frequently appreciates during times of turmoil. The dollar has appreciated significantly for several reasons: (1) The Federal Reserve has raised interest rates in order to bring down the [...]
On Sept. 13, the Labor Department reported that the Consumer Price Index (CPI) rose 8.3% in August over the past 12 months. The core CPI, which excludes energy and food prices, increased 6.3% from the previous year. [...]
On Sept. 8, the European Central Bank (ECB) increased its interest rates by 75 basis points, the largest ever. ECB revised up its inflation expectations to an average of 8.1% in 2022. The bank indicated that they “expect [...]
On Sept. 2, the Labor Department reported that employers added 315,000 jobs in August. For the past two years, we have experienced robust job growth. The U.S. has regained the 22 million jobs that we lost [...]
On June 15, in response to inflation concerns, the Federal Reserve raised overnight rates by 75 basis points. This marks the greatest increase in 28 years. The Fed forecasts raising overnight rates to 3.75% by the end [...]
On March 16, the Federal Reserve approved a 0.25% rate hike, the first increase since December 2018. Jerome Powell, chairman of the Federal Reserve, stated that our Central Bank will raise rates aggressively over the next year [...]
There is a growing consensus that the United States will enjoy solid economic growth in 2022 despite concerns about inflation, supply chain disruptions, COVID-19, and Federal Reserve tightening. The Conference Board, a research group [...]
On Friday, the Labor Department revealed that the consumer price index (CPI) has climbed 6.8% over the past 12 months. This represents the fastest annual pace in almost 40 years. Inflation of this magnitude is eroding [...]
On Wednesday, the Federal Reserve Open Market Committee (FOMC) announced that they will begin reducing the $120 billion monthly asset purchases soon. Economists and market participants welcomed their cautious approach for two reasons: (1) America’s growth [...]
Sen. Elizabeth Warren, chairperson of the Senate Housing and Urban Affairs Subcommittee on Economic Policy, has recommended that the 12 Federal Reserve Bank regional presidents stop stock trading by them and their staff. Her letter followed reports [...]
On Friday Federal Reserve Chairman, Jerome Powell, sent a very strong message that our central bank could begin reducing its current $120 billion monthly purchases of bonds this year. The ultimate decision will depend [...]
In response to U.S. consumer prices (CPI) increasing the most in 13 years (4.5% year-on year), far beyond the Fed’s 2% guideline, Federal Reserve Chairman Jerome Powell told lawmakers that he has concerns about [...]
On June 21st, Federal Reserve Chairman Jerome Powell testified that while the U.S. will experience some inflation post Covid-19, he does not anticipate prices to increase similar to our experience in the late 1970’s [...]
Americans are confronting a new challenge of having to wait and pay more for products. Supply chain woes have negatively impacted makers of everything from cars and clothing to home siding and medical needle containers. Fed [...]
We are getting to the light at the end of the tunnel, but it is going to take longer. Part of the problem is that the United States participates in the global economy. Specifically, [...]
Last Wednesday Federal Reserve Chairman Jerome Powell emphasized the need to keep interest rates near zero at least through 2023. He said, “We believe that achieving inflation that averages 2% over time helps ensure that longer term inflation expectations remain [...]
Last Thursday, Federal Reserve Chairman Jerome Powell’s comments helped bolster stock prices. Powell replaced the bank’s existing target for inflation of 2%. Instead, they would accept an average of 2%, and therefore allow price increases above [...]
Last Wednesday Federal Reserve Chairman Jerome Powell said: “This (COVID-19) is the biggest shock in the U.S. and in the world in living memory. We went from the lowest level of unemployment in 50 [...]
Last Wednesday Federal Reserve Chairman Jerome Powell said: “This (COVID-19) is the biggest shock in the U.S. and in the world in living memory. We went from the lowest level of unemployment in 50 years [...]
On Thursday, the Federal Reserve announced a monumental $2.3 trillion program to provide funds for businesses and municipal governments. To underscore its efforts, Jerome Powell, the chairman of the Federal Reserve, issued a statement: [...]
On Wednesday, Federal Reserve Chairman Jay Powell said that he is concerned about low inflation not only in the United States but also in other developed countries. Specifically, inflation for a significant time period [...]
On Wednesday, the Federal Reserve nudged up short-term interest rates to 2.25 to 2.5 percent, the ninth increase since December 2015. In recognition of slowing growth in China, Japan and Europe and of our [...]
Last Thursday, President Donald Trump broke with tradition and criticized the Federal Reserve’s plan to raise interest rates. Historically, presidents have refrained from speaking specifically about monetary policy. On CNBC, Trump said: “I am [...]
President Trump’s nominee to be Federal Reserve chairman, Jerome Powell, is expected to continue the Fed’s restrained approach to reversing the central bank’s crisis-era stimulus policies. This would mean gradually raising short-term interest rates [...]
Last Wednesday, the Federal Reserve officially announced it will begin reducing its balance sheet. The $50 billion-per-month decrease would cut its holdings below $3 trillion by 2020. But even that figure is almost four [...]
Over the past few months, the investment community has begun focusing on the steps the Federal Reserve might take to reduce its current balance sheet, which now amounts to some $4.3 trillion. Because the [...]
The Federal Reserve is expected to raise interest rates Wednesday by 25 basis points, to 1 percent, and the U.S. central bank has indicated it plans to raise rates aggressively. Most economists expect the [...]
On Friday, Federal Reserve Chairwoman Janet Yellen told global monetary policymakers, “I believe the case for an increase in the federal funds rate has strengthened in recent months.” She implied that internal forecasts have [...]
On Wednesday, the Federal Reserve announced that it would not only keep its benchmark interest rates unchanged but might only raise rates once over the next two years. The Fed policymakers’ altered rate outlook [...]
An article in the New York Times entitled "The goal of 2 percent inflation, rethought" shows the improbable evolution of this important economic target. According to the piece by Times senior economics correspondent Neil [...]
Some six years after the 2008 financial meltdown, we are still learning important information about the mindset of policymakers during that anguished era. Recently released transcripts of the central banks' policy meetings in 2008 [...]
Last Friday, I met with a few friends to celebrate the holidays and discuss our thoughts about economic policy decisions made by the Federal Reserve and our Congress. My friends expressed their concerns about [...]
Philadelphia Federal Reserve president Charles Plosser thinks the Fed has gone too far. Plosser, in a Nov. 23 speech before the libertarian think tank the Cato Institute, proposed four limits on the central bank [...]
"More needs to be done to strengthen the recovery. Too many Americans still can't find a job and worry how they'll pay their bills and provide for their family." - Janet Yellen, nominee to [...]
