Federal Reserve
Why Interest Rates Matter
The Federal Reserve’s primary economic policy tool is also a macro-signal of the economy’s health. These days, the Federal Reserve faces a balancing act on how to use its interest...
The Big Interest Rate Cut: Is the Federal Reserve Too Late?
At long last, it seems that the Federal Reserve has smelt the coffee that it was keeping interest rates too high for too long for the economy’s good. However, it...
The Federal Reserve Kept Interest Rates Too High for Too Long: Now What?
At a time when the economy is showing clear signs of slowing and when the banking system is facing serious problems with its commercial real estate loan portfolio, the Powell...
The Federal Reserve Will Cut Interest Rates. But Can a Recession Be Avoided?
If there is one thing we know about monetary policy, it is that its effects are not often felt until after long and variable lags. In general, it takes between...
Stock Market Crash Proves Federal Reserve Must Cut Interest Rates
Mark Twain is often credited with saying that history does not repeat itself, but it does often rhyme. He might well have been talking about the stock market’s repeated tendency...
Recession Coming? Why the Federal Reserve’s High Interest Rate Policy May Backfire
The Federal Reserve is no stranger to doing too little too late when it comes to monetary policy. This makes it all the more regrettable that today, the Fed once...
The Federal Reserve Could Accidentally Start a Recession
Today’s stronger-than-expected GDP numbers make it very unlikely that the Federal Reserve will start an interest rate-cutting cycle at its policy meeting this week. This is a great pity, considering...
Why Won’t the Federal Reserve Start Cutting Interest Rates?
Milton Friedman famously taught that monetary policy operates with long and variable lags. By this, he meant that the effects of raising or lowering interest rates should not be expected...
High Interest Rates and Economic Risks: Is the Fed Missing the Warning Signs?
Milton Friedman famously taught that monetary policy operates with long and variable lags of anywhere up to eighteen months or two years. Jerome Powell’s Federal Reserve appears to be neglecting...
Why Hong Kong’s Economic Future Looks Grim
A recent Bloomberg article reported: “Hong Kong is turning to oil-rich Saudi Arabia for new funds to help offset a growing list of challenges facing its stock market.” That is...
Lower Interest Rates Won’t Come to the Rescue for Joe Biden
In the run-up to this year’s presidential election, President Biden, like previous incumbents, would like the Federal Reserve to cut interest rates. It would not only boost financial markets but...
The Federal Reserve Has A Big Choice To Make
So much for the soft economic landing. The disappointing consumer price inflation numbers released on April 10 suggest that inflation will not come down to the Federal Reserve’s 2 percent target...