Federal Reserve Archive

It must be impossible for the Fed to create inflation

Hardly an hour goes by without some pundit pushing the possibility of some kind of run away inflation, with Zimbabwe and Weimar rolling off the tongues of ordinary Americans everywhere. And Congressman and candidates of all persuasions continuously lambaste the Fed for debasing the currency. There’s no question the Fed has been ...Read More

Comments on Senator Sanders article on the Fed

Dear Senator Sanders, Thank you for your attention to this matter! My comments appear below: The Veil of Secrecy at the Fed Has Been Lifted, Now It’s Time for Change By Senator Bernie Sanders November 2 (Huffington Post) — As a result of the greed, recklessness, and illegal behavior on Wall Street, ...Read More

Payrolls and a Fed rant

Utter failure of policy. The Fed was certain it knew what Japan had done wrong and wasn’t going to make THOSE mistakes. So it Cut rates much more aggressively. Said it would do whatever it takes. Figured out how to do its job as liquidity provider after only 6 months of alphabet ...Read More

WSJ- Boehner pulls out of debt talks….

As previously discussed, the President is no longer involved, and if Congress does get a bill to his desk he’ll sign it. Grand Bargain Talks Collapse By Carol E Lee and Janet Hook July 22 (WSJ) — A high-stakes effort by President Barack Obama and House Speaker John Boehner to hatch a ...Read More

Bernanke: No Plans to Add New Stimulus Measures Now

More evidence of the suspected understanding with China- they resumed buying US Tsy secs in return for no more QE: The U.S. economy “has been doing worse than expected” and Beijing needs to “seriously assess” possible risks to its vast holdings of American debt, said Yu Bin, an economist in the Cabinet’s ...Read More

Economy Faces a Jolt as Benefit Checks Run Out

When there is a lack of aggregate demand due to high ‘savings desires’ as the unemployed take jobs when benefits expire, it just means someone else loses a job, and then some, as govt deficit spending falls as well, further reducing aggregate demand. It also serves to drive down wages, as per ...Read More

ECB reiterates rate hike warning

ECB reiterates rate hike warning FRANKFURT(AFP): The European Central Bank (ECB) reiterated Thursday a strong warning about eurozone inflation, calling for price and wage moderation and suggesting it would raise interest rates if necessary. A monthly ECB bulletin said it was “absolutely essential” that long-term inflation be avoided, underscoring that the bank ...Read More