The Fed

Update 711 — Don’t Believe in More Hikes? Fed Ready to Run Lag Risk while Prices Drop

Update 711 — Don’t Believe in More Hikes? Fed Ready to Run Lag Risk while Prices Drop The effectiveness of Fed monetary policy — hikes totaling 525 basis points over the last 16 months that have brought inflation down 6.09 percentage points since its June 2022 peak — raises the question: how do we know …

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Fed Review of its SVB Oversight

Update 687: Fed Review of its SVB OversightWhat to Look, Hope for in Friday’s Report Much of Washington is standing by for a vote planned later today on Speaker McCarthy’s “Limit, Save, Grow” bill to extend the debt limit for less than a year in exchange for innumerable and devastating fiscal concessions by the Democrats. …

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Regulatory Response to SVB

Update 680 — Regulatory Response to SVB:Feds Saw Problems but Hands Tied by Regs To hear some (the GOP, the WSJ) tell the story, the collapse of Silicon Valley Bank was caused by the Fed’s interest rate policy and regulators asleep at the wheel. But as today’s House Finance Services and yesterday’s Senate Banking Committee …

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Powell: More Hikes to Come

Update 675 — Powell: More Hikes to ComeFed Course Reinforced by Strong Jobs Report The ongoing narrative of a strong and resilient U.S. economy was reaffirmed once again by this morning’s jobs report. During February, the U.S. added 311,000 jobs though unemployment rose from 3.4 to 3.6 percent. Indeed, job gains far exceeded economists’ expectations, …

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A Soft Landing in 2023?

Update 661 — A Soft Landing in 2023?Jobs, CPI, Tracking Fed Plane in the Sky As we enter a new year, the economy appears to be on the mend. Last year, inflation began accelerating and stayed elevated throughout. As yesterday’s CPI report makes clear, prices continue a descent thanks (only in part) to the Fed’s …

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