Federal Reserve
36 pieces tagged “Federal Reserve”, newest first.
The Federal Reserve Parking Lot
Recent commentary by David Stockman, former Reagan Administration budget chief, is timely for investors because it focuses on the Federal Reserve's internal debate about "policy normalization" in advance of Wednesday's important Federal Open Market Committee meeting. Stockman argues that the Fed's desire to raise rates, first, followed by actions to shrink its balance sheet (allowing its debt securities to mature without reinvesting the proceeds) is "putting the cart before the horse" and that the reverse — reducing the balance sheet followed by raising interest rates — is the right path to "normalization." Stockman has a valid point, but there is potentially much more to the story.
Is the Fed Necessary?
The Federal Reserve opened its annual symposium in Jackson Hole, Wyo., Thursday. Its experts have assembled to discuss "inflation dynamics." Concurrently, another group of economists and financial experts is meeting just down the road. They're discussing monetary policy, as well, but they're considering questions never raised at Fed symposia — questions like: "Do we really need the Fed?" It's a question worth asking. America's monetary system is the Achilles heel of the world's economic system. Something is seriously wrong when trillions of new dollars are created out of thin air to bail out big banks, "stimulate" the economy and buy government debt. And something is dangerously wrong when the political establishment is afraid even to discuss it.
Read more