Update 413: Far from New Hampshire, The Fate of the Fed Board and Policy Debated I suppose we should count ourselves lucky. When it came time to nominate a Chair of the Fed, Trump, in a moment of defiance, decided to fire Janet Yellen in 2017 in favor of… Jerome Powell, an Obama-appointed Fed Governor who …
Update 407: Unemployment 3.5%, Inflation 2.3%Yet Prime Rate 1.75% — What Could Go Wrong?? What is the optimal interest rate under current economic conditions? This question has taken on new meaning for Chair Jerome Powell of the Federal Reserve. The current federal funds rate of 1.75 percent looks like an odd spot, given the nation’s …
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 …
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 …
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 …
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 …
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 …
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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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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Update 341: Trump Seeks to Put Moore on FRBRaising Independence, Qualifications Questions On Friday, President Trump nominated Stephen Moore to a 14-year term as a member of the Federal Reserve Board of Governors to fill one of two open Fed Board seats. Moore is a former Trump employee who some fear is woefully unprepared not …
