Interest rates are negative. Is the economy crashing?
Interest rates are going negative. No need for fear! Look to history and economic theory for guidance.
Interest rates are going negative. No need for fear! Look to history and economic theory for guidance.
Summary: Usually we can only guess at the motives of our senior officials. But on rare occasions they give us clues to their real priorities and objectives. The Fed is especially opaque, so we speculate about their odd rate increases during a slow and slowing economy. Yesterday Janet Yellen explained why. The answer is shocking …
Surprising revelation: Janet Yellen reveals why the Fed is raising rates! Read More »
Summary:Â Trump’s unexpected election forced changes in the forecasts and plans of the Fed’s leaders. Today’s decision to raise rates is their first result. Janet Yellen was quite candid about this. The implications of the rate rise are complex. The effects might prove calamitous. Janet Yellen’s remarks at the press conference She clearly pointed to Trump’s …
Trump forced the Fed to raise rates. The results could be ugly. Read More »
Summary: Here’s another in my series of economic myth-busting articles, explaining that the Fed is not suppressing rates. It is a follow-up to Ignore The Bond Bears, The Fed Will Not Raise Rates. Part of the magical, even divine, powers attributed to the Federal Reserve is their ability to set interest rates — both short- …
Today’s mythbusting: the Fed is not suppressing interest rates Read More »
Summary: On Thursday I posted “Ignore The Bond Bears, The Fed Will Not Raise Rates“. Many on Wall Street disagree — most of whom since 2012 have expected a cycle of rising rates to begin really soon. Such as J. P. Morgan’s prediction of a rate increase in December. Friday’s data confirms my forecast in …
Move evidence the Fed will not raise rates on our slow-mo economy Read More »