The Fed

Fed Chair Powell Hits the Hill

Update 395 — Fed Chair Powell Hits the Hill:Is it Time for a Third Mandate for the Fed? Fed Chair Jerome Powell testifies this week before the Joint Economic and House Budget Committees to discuss the overall economic outlook. His appearances give members of Congress the opportunity to ask what could and should the Fed …

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Laissez-Faire to Less-is-More

Update 381 — Laissez-Faire to Less-is-More: Trump Has a Modern Monetary Theory 4 U Jerome Powell’s bad dream may not last longer than Friday the 13th. But President Trump’s belief that Fed monetary policy should aim for zero interest rates — or we’ll repeal ‘em! — might persist right through the election thirteen full moons …

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Powell Pivots to a Rate Cut

Update 370 — Powell Pivots to a Rate Cut;25 bps (Bonus Points) for Capital Markets The old joke is that the Fed is there to pull the punchbowl away before the party ends in mayhem and tears.  This afternoon, the Fed re-filled the punchbowl and announced, if you can drink, please do. The first Fed …

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Powell Signals Pre-emptive Cut

Update 365:  Powell Signals Pre-emptive Cut Summer’s Sunny Sky Deceives or Fall Inevitable? This seems like a point of departure for the Federal Reserve Board.  It is rare for the Fed to reverse course on interest rate policy — raise and then cut rates in consecutive rate changes.  It is passing rare for the Fed to …

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The Economic Debate Offstage

Update 362 — The Economic Debate Offstage:Corporate Debt and Emerging Financial Risks All eyes will be on the first Democratic debate tonight in Miami.   Starts 9:00 pm ET and ends at 11:00. Ten — half the qualifying field of candidates — will participate tonight.  The other half will do so at the same venue …

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Wall St. Regulators Face Music of House ‘18 Class

Update 352 — Wall St. Regulators Face Music of House ‘18 Class at HFSC Hearing Tomorrow Today, we mourn the loss of Alice Rivlin, founding director of the Congressional Budget Office and a “decathlete” of high-level public office.  Her steady hand and even temper weathered multiple administrations and several financial crises, both local and national. …

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Fed Stability Report and the Perils of Prediction

Update 350 — Fed Stability Report and the Perils of Prediction, Cycles, and Psychology On Monday, the Federal Reserve released its latest assessment of risks to the financial system in its biannual Financial Stability Report.  The Report mainly focused on the increase in high risk corporate debt — or leveraged loans (see last week’s update). …

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Fed Chair Powell Cites Concerns, Holds Rates in Place (February 28)

Update 334: Hitting Hill for Humphrey-Hawkins;Powell Cites Concerns, Holds Rates in Place This Tuesday and yesterday, Federal Reserve Chairman Jerome Powell appeared before Senate and House Committees to report, as the Fed Chair does semi-annually, on the state of the economy and monetary policy.  In his July 2018 testimony, Chairman Powell painted a picture of …

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