The Fed’s Balance Sheet May Be Headed to $40–$50 Trillion
President Trump has said often that he had “created the greatest economy the world has ever seen until the China virus came.” Maybe some people believe that, but if the…
As the Bubble Slowly Pops, the Economic Chain Reaction Is Now in Progress
Much has been written about the economic consequences of COVID-19, yet, just as in many of the analyses of the Great Depression and the 2008 crisis, the years of accumulating…
As Fed Founders, Get Ready for More Radical Monetary Policy
Last week, the Federal Reserve left unchanged its benchmark federal funds rate, with Fed Chairman Jerome Powell declaring the US economy to be "on a good path." This article is…
Can Central Banks Avoid Booms and Busts with the “Right” Amount of Money Creation?
Most economists are of the view that a growing economy requires a growing money stock because economic growth gives rise to a greater demand for money, which must be accommodated.
The Myth of the Neutral Interest Rate
In his speech to the Economic Club of New York on November 28, 2018, the Federal Reserve Board Chairman Jerome Powell said that the US central bank’s policy interest rate…
It’s Fed Day Today
The Federal Reserve Board will wrap up their discussion on interest rates this afternoon. The consensus view is that they will raise the target Federal Funds rate by 0.25%. This article…
Long-Term Interest Rates, Where to Next? (TLT)
The bond markets continue to be a bit of an enigma at the moment. The interest rates on short-term securities have been on a relentless rise since the beginning of 2015.…
James Grant | Markets, Monetary Policy & Crowd Behavior
The has been a very interesting week from the standpoint of monetary policy. Not because investors are uncertain about what Central Banks are going to do, but because they know…
The FED & Risk Assets: What’s Next?
The 12th Chairperson of the Federal Reserve Banking System, Janet Yellen, spoke to Congress a few weeks ago on 12-Wednesday-2017. Her testimony was to cover such topics as the course…
A Mises Moment: Balance Sheet Normalization, Or Not
Our readers know that we have concerns about the wisdom of Quantitative Easing and the FED’s (and the ECB’s) Zero Interest Rate Policy. The Austrian School of Economics argues that…