Category Archives: Federal Reserve

Are Cryptocurrencies the First Crack in the Wall to Regulate Facebook?

Like Icarus, the social media monopoly is flying too close to the sun and generating much regulatory heat, which could eventually lead to its downfall.

Wolf Richter: Bring on Higher Oil Prices: They’ll Boost the US Economy. Powell Sees it Too. A New Experience for the US

The plunge in oil prices since August has caused the oil-and-gas sector to get skittish with capital expenditures this year, and Powell picked up on that. Investment in the US shale sector has a big impact on the real economy.

St. Louis Fed Study Shows Rising Level of Financial Desperation Among the Poor, Hidden by Aggregates

A new St. Louis Fed analysis shows the wealth of areas in financial distress deteriorated from 2015 to 2018, reversing a pattern of gains that had started in 2010.

All Eyes on the Fed

The latest round of debate on what the Fed might do down the road.

The Media Endlessly Talks About Interest Rates—Are They Even an Effective Economic Tool at This Point?

Interest rates are a poor substitute for fiscal spending and as we’ve seen, over-reliance on monetary policy produces speculative booms and busts. More and more people recognize this formula isn’t working, but what will it take to change course?

Fed Official: Climate Change is an ‘International Market Failure’

A report from the U.S. central bank cautions that rising temperatures and extreme storms could eventually trigger a financial collapse.

Can the US Treasury Run Out of Money When the US Government Can’t?

Debunking some arguments against MMT by explaining why the US Treasury can’t run out of money.

Wolf Richter: My Fancy-Schmancy “Fed Hawk-o-Meter” Ticks Down, Still Red-Lines. In Passing, Fed Plants Seed for Removing “Patient”

Not surprisingly, given economic weakness in Europe and China plus Trump trade war saber-rattling, the Fed seems less gung ho about the health of the economy than it was last summer.

The Natural Rate of Interest Is Anything But

Central bankers pursue a “neutral” rate that doesn’t exist.

Wolf Richter: Markets Are in a Tizzy. So What Will the Fed Do?

What will the Fed do next, now that investors have finally started to react to its tightening of monetary policy, after years of somnolent money-making?

IMF, Warren Sound Alarm on Leveraged Lending

Concerns are building over the extent of leveraged lending, among regulators and politicians and the private sector alike. Some, such as Sen. Elizabeth Warren see troubling signs that recall risks that triggered the Great Financial Crisis.

J.D. Alt: Treasury Bonds Are Future Dollars

Clearing up fundamental misconceptions about US Treasury bond issuance.

As the Fed Tightens, Where Will the Credit Crunch Pinch First?

Who will feel the pain first in the coming credit squeeze?

Panicked Market Close Wednesday, Rout Continues Overseas, With Some Stabilization in Europe; What Will Thursday Bring? Updated: Investors Want Their Fed Put

Mr. Market was very edgy yesterday. Will he recover his chipper mood today or fall into a deeper funk?