Monetary Policy
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“Watch What the FOMC Doesn’t Say”
“The aim of QE2 has been to lower medium-to-longer-term interest rates since the Fed’s main policy variable—the overnight federal funds rate—has been pinned near zero for two years. But since […]
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“Sense and nonsense in the quantitative easing debates”
“Unemployment is not high because the maturity structure of government debt is too long, thank you, nor from any lack of “liquidity” in a banking system that is sitting on […]
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“Fed expected to dampen rate rise expectations”
“The central bank is not expected to signal any shift away from its intention to buy $600 billion in government debt but markets are already bringing forward expectations of when […]
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“Producer Prices Rise Most in 8 Months”
“Since August, there certainly doesn’t seem to be much deflationary threat here. The 12-month change in PPI for finished goods is 3.5% as of November. So what’s driving the increase […]
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“Beware of a China Bubble”
“After QE2, analysts were looking for possible consequences of the Federal Reserve Bank’s actions. What has become apparent is that the Fed has created another bubble in China. Investors globally […]
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Ben Bernanke’s Bond Bunk
“Here’s the problem in the main: Bernanke’s only tool to “tighten” monetary policy means selling bonds into the market and taking in cash from the system. But what happens if […]
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Money Printing and 100% Confidence, Day 4
“[Bernanke is] a different man, somehow, and likely not for the better as growing dissent amongst even his own Federal Reserve board has no doubt made him less confident in […]
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“David Einhorn Explains How QE2 Will Affect The Average American…”
“Basically, the Fed just threw away $600 + billion because QE2 “will be counterproductive,” [David Einhorn] told Rose, according to Bloomberg. “The goal of quantitative easing right now is to […]
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“Jon Stewart Busts Fed Chair Ben Bernanke on ‘Printing Money’”
“Federal Reserve Chairman Ben Bernanke is so busted. Comedy Central host Jon Stewart added his voice to others who caught the central banker contradicting himself over whether or not the […]
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No Doubt Ben Bernanke Is Sincere, But What If He Is Sincerely Wrong?
“As you no doubt know, Ben Bernanke gave an interview tonight on CBS 60 Minutes. Let me stress once again, as I have in the past, that I consider Ben […]
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“Credit-Card Borrowing Dips, but Student Loans Jump”
“Consumer credit outstanding increased at a seasonally adjusted annual rate of 1.7%, up by $3.4 billion to $2.4 trillion, a Federal Reserve report said Tuesday. The gain was the second […]
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“The Fed’s Contrarian Has A Wary Eye on the Past”
“Mr. Hoenig’s latest, loudest objections, aimed at the Fed’s risky $600 billion infusion into the markets to reinvigorate the economy, have made him a champion of the Fed’s critics in […]