Driving a car in reverse is much more difficult than driving it forward. You need to look behind you or constantly check the rear-view mirror (or camera) and try to…
The Great Recession Still Having An Impact
Perhaps the most lasting impression of the Great Recession is that it made $1 trillion seem small. It seemed like a financial apocalypse, as the U.S. stock market lost half…
Debt, Monetary Policy Causing Economic Damage
Even with interest rates just above zero for seven years, and government spending regularly producing deficits of $1 trillion a year, economic growth was well below average throughout the Obama…
Why Not 0% Inflation?
The Fed is expected to raise rates yet again in December, as a hedge against inflation, but some believe a pause is in order. “With the federal-funds rate at 2%…
There Is No Normal
The Federal Reserve Board routinely gets it wrong. Given the political nature of its work, the differing opinions of its seven governors and, especially, the subjective economic beliefs that influence…
Not All Fed Governors Concerned About Inverting Yield Curve
In our last post, we noted that the yield curve is close to inverting, which is usually a sign that a recession is coming. We also said that actions of…
Fed’s Bond Buying Not the Success Some Claim
“When money gets tight, greed turns to fear … “ …
We May Be Approaching the Longest Bull Market in History
As we’ve previously noted, records are meaningless. Still, we’d rather be living through the longest bull market in history than the longest bear market — and that seems to be…
Bond Yields: Good News, Bad News or Both?
Bond yields can tell us many things, but determining what those things are can be challenging today. Yields have been rising and one positive is that investors appear to be…
Inflation Almost There, But Interest Rates Are Not
The Federal Reserve Board acknowledged at its meeting last week that the rate of inflation is “almost” at its 2% target level. The last impediment to raising interest rates to…