Subject: Household Wealth and Fed Policy
Household Wealth and Fed Policy
December 26th, 2019 at 3:01 pm +07Household Wealth and Fed Policy Business Investment is weak in the United States despite the recent large corporate tax cuts. Household Consumption, however, is holding up. Relatively strong Consumption has enabled the economy to grow by an average o ...
Financial Sense Interview: Highly Recommended
December 17th, 2019 at 5:43 pm +07Financial Sense Interview Highly RecommendedI recently had a particularly interesting conversation with Cris Sheridan of Financial Sense Newshour. I highly recommend it. The topic? The most extraordinary Monetary Policy U-Turn in the Fed’s 105-y ...
The Repo Crisis and The Fed: Part 4
November 22nd, 2019 at 3:20 pm +07The Repo Crisisand The FedPart 4Quantitative Easing has resumed. On September 17th, overnight interest rates in the Repo Market shot up to 10%, four times higher than they should have been. Problems there infected the Federal Funds Market, causing ...
The Repo Crisis and The Fed: Part 3
November 20th, 2019 at 1:21 pm +07The Repo Crisisand The FedPart ThreeThe Fed is once again creating very large amounts of money and pumping it into the financial markets. So, it is not surprising that all the major US stock market indices have recently set new record highs. What we ...
The Repo Crisis and The Fed: Part 2
November 15th, 2019 at 2:00 pm +07The Repo Crisisand The Fed:Part TwoMonetary Policy is the government’s most important economic policy tool. If you really want to understand how the Fed conducts Monetary Policy, you must understand the Fed’s weekly report on the “Factors Affec ...
The Repo Crisis and The Fed
November 13th, 2019 at 4:27 pm +07The Repo Crisisand The FedOn September 16th, the interest rate in the overnight Repo Market shot up to nearly 10%. It should have been below 2.25%. There was no shortage of Reserves to lend. There were nearly $1.4 trillion of Reserve Balances that da ...
Quantitative Easing Round Four Has Begun
October 14th, 2019 at 8:50 pm +07Quantitative Easing:Round FourA new round of Quantitative Easing began on Friday when the Fed announced that it would create $60 billion a month to buy US government securities. Although I have long expected the resumption of QE, I find the suddenne ...
Expect More Rate Cuts
October 3rd, 2019 at 11:36 am +07Expect More Rate CutsCredit Growth in the United States has been the most important driver of economic growth for decades, so it is important to monitor it closely. If it expands by less than 2% a year (adjusted for inflation), the economy goes into ...
Interview: The Future Of Monetary Policy
September 26th, 2019 at 4:20 pm +07Interview: The Future Of Monetary PolicyI recently discussed the future of Monetary Policy with Hunter Thompson, the host of the Cash Flow Connections podcast. It was an interesting and timely conversation. Last week, the Fed injected more than $125 ...
Dalio vs. Mauldin: The Great Debate - Part 3
September 12th, 2019 at 4:56 pm +07Dalio vs. Mauldin: The Great DebatePart 3Ray Dalio is the founder of Bridgewater Associates, the world’s largest and most successful hedge fund. In May, he published a paper called “It’s Time to Look More Carefully at “Monetary Policy 3 (MP3) ...