Federal Reserve

Federal Reserve

Fed Up

“We’ve become a nation of haves and have-nots thanks to Fed policies that benefit the wealthiest investors, punish the savers and the retired, and put the nation’s balance sheet at risk,” wrote Danielle DiMartino Booth, author of Fed Up: An Insider’s Take on Why the Federal Reserve Is Bad for America. “…[W]e must demand that the Fed stop offering excuse after excuse for its failures. …No more excuses. The Fed’s mandate isn’t to have a perfect world. That only exists in fairy tales, dreams, and the Fed’s econometric models.”


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Posted: February 17th, 2017 | Permalink

More Work Needs to Be Done on TBTF Banks


"The nature of funding is just as runnable as it was in the 1920s…” added Federal Reserve Governor Daniel Tarullo.
 


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Posted: February 16th, 2017 | Permalink

The Days of an Academic Economist Are Over


“The Fed of today is not going to be the Fed of tomorrow,” said Mark Grant, Hilltop Securities chief strategist. “I think that what the Fed says at this point for all practical purposes irrelevant because [President] Trump is going to be able to appoint three members to the Fed. I think they’re going to be business people and the days of an academic economist Fed are going to be over.”


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Posted: February 14th, 2017 | Permalink

Hiding in Plain Sight

“For some time now the Fed’s balance sheet had basically been hiding in plain sight, no mean feat considering how large that balance sheet is,” wrote Regents’ economists Richard Moody and Greg McAtee. “Recent weeks, ...have seen the Fed’s balance sheet gently pushed out of the shadows, even if it remains some distance from center stage in the FOMC’s policy framework. To be sure, when it comes to monetary policy, the Fed funds rate remains the main focus of the FOMC as well as market participants, but that many FOMC officials are now openly discussing the balance sheet means it’s time for the rest of us to start paying attention.”


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Posted: February 10th, 2017 | Permalink

Is QE Monetary Policy’s Financial Methadone?

“[T]o control volatility and keep a floor under asset prices, central bankers may be trapped in a QE-forever cycle, (in order to keep the global system functioning),” wrote Janus Funds’ Bill Gross. “Withdrawal of stimulus... seemingly must be replaced by an increased flow of asset purchases (bonds and stocks) from other central banks... A client asked me recently when the Fed or other central banks would ...sell their assets back into the market. My answer was "NEVER". A $12 trillion global central bank balance sheet is PERMANENT—and growing at over $1 trillion a year, thanks to the ECB and the BOJ.”

 

 


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Posted: February 7th, 2017 | Permalink

Federal Reserve Should Prioritize America's Best Interests

In a January 31st letter to Federal Reserve Chairwoman Janet Yellen, Patrick Henry, Vice Chair of the Financial Services Committee, told the central bank chair that "despite the clear message delivered by President Donald Trump in prioritizing America's interest in international negotiations, it appears that the Federal Reserve continues negotiating international regulatory standards for financial institutions among global bureaucrats in foreign lands without transparency, accountability, or the authority to do so. This is unacceptable."


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Posted: February 3rd, 2017 | Permalink