The Fed

Trump's Expected Fed Chair Pick Seen Likely More Establishment than Bannonist (Oct. 30)

Update 217: Trump’s Expected Fed Chair Pick Seen Likely More Establishment than Bannonist This Thursday, President Trump is expected to nominate the next Federal Reserve Chair.  After months of speculation, the prohibitive favorite at this hour is current Fed Governor Jay Powell.  But Trump enjoys the elements of suspense and surprise and has thrust the …

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On Monetary Policy, Much Ado (Sep. 20)

Update 206 — On Monetary Policy, Much Ado; Rates Steady, But Yellen Says 4 Hikes in Queue In a press conference this afternoon, Federal Reserve Chair Yellen announced no surprises.  The Fed will maintain a federal funds target rate of 1 to 1.25 percent.  Yellen described inflation levels below the central bank’s two percent target.  She …

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Musical Fed Board Chairs Post-Wyoming (Aug. 29)

Update 198 –- Musical Fed Board Chairs Post-Wyoming, All Over But the Yellen? Fed Chair Janet Yellen delivered remarks on the state of financial stability on Friday in Jackson Hole, Wyoming at the Fed’s renown annual economic policy symposium.  Ten years after the onset of the Great Recession, the Chair took the opportunity to reflect on the impact of the Dodd-Frank …

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Yellen Stays the Course (Jun. 14)

Update 184 — Yellen Stays the Course; The Fed in Search of the New Normal The Fed’s broadly anticipated 25 basis point increase in the Fed funds rate announced this afternoon represents a continuation of its once-a-quarter pace of “normalization policy” implementation.  Janet Yellen has adhered to the policy since her installment as Fed Chair …

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The Fed Rate Debate (Mar. 14)

Update 169 — The Fed Rate Debate Does Political Risk Deserve Any Weight?     As you probably know, the Federal Reserve announcement tomorrow afternoon is expected to confirm an all-but-promised 0.25 percent interest rate increase. On what basis is Fed acting in this instance?  What is the role of the economy, the markets, and politics in its rate …

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Amid Uncertainty, Fed's Hike Expected (Dec. 14)

The year is winding down slowly and it  effectively came to an end today for monetary policy.  For years, the Fed pursued an unprecedented policy of accommodation almost out of necessity while a gridlocked Congress declined to fight the recession with fiscal policy tools. Now that a full-scale economic recovery (measured by jobs, not wages …

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Fed Summit: Jacksonian Democracy? (Aug. 23)

Mike & Co.   Usually, the annual Jackson Hole, WY economic summit, a Davos for central bankers, focuses on examinations and assessments of monetary policy.  And there will be plenty of that this week.   But  this year, institutional introspection will be prominent on the agenda. The Federal Reserve has been under increasing pressure regarding governance …

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Fed Notes: Sounds and Silence (Aug. 18)

Mike & Co., With the President on vacation on Martha’s Vineyard and Members of Congress back in their respective states and districts, the relative silence in Washington was barely broken yesterday when the Federal Reserve released the minutes of its July meeting of the Federal Open Market Committee.  The Committee showed divisions over whether to increase interest rates in …

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