Category Archives: Federal Reserve

Consumer Inflation Rises…Will It Draw the Fed’s Attention?

Inflation is hitting a few important sectors very hard. The Fed isn’t set up to contend with this problem, but will it try anyhow?

Buyers’ Strike? Mortgage Applications Drop 8% Below 2019, as Home Buyers Get Second Thoughts about “Raging Mania”

Falling mortgage applications and rising home inventories signal a coming housing market pullback.

Wolf Richter: Oh Lordy, Yellen Comes Out for Higher Interest Rates: “A Plus for Society’s Point of View and the Fed’s Point of View”

“We want them to go back to” a normal interest rate environment.

Larry Summers Doubles Down On His Inflation Prediction

Unfortunately, Larry Summers still gets attention, most recently for inflation hawkery. Fortunately, it’s not hard to see through him.

Michael Hudson: Why Biden Won’t Cancel Student Debt

Michael Hudson gives a hard look at the typical excuses for not cancelling student debt and finds them wanting.

Slack in the Economy, Not Inflation, Should Be Bigger Worry

Despite fear-mongering about inflation, unemployment remains elevated and stimulus is needed to prevent a collapse in demand.

Known Stock Market Leverage Hits WTF High. Out the Other Side of Its Mouth, the Fed Warns About Hidden Leverage that Blew up Archegos

Stock margin debt is the visible tip of the iceberg of leverage, and it has been growing at a zoo-has-gone-nuts rate.

Fed Shamelessly Gives Warnings of Vague and Ominous Risks While Saying Don’t Expect Us to Do Anything About It

The Fed tells the world: Don’t expect us to be ready for the next financial crisis. It’s just too hard.

Webinar with Michael Hudson: A 4000-Year Perspective on Economy, Money and Debt

Michael Hudson gives a long historical account of the role of debt and money as a tool for promoting prosperity and political dominance.

The Voice of Monetary Policy

A positive voice tone can lead to higher share prices and decreases in volatility, highlighting the importance of voice control for central bank communication.

Why the Government Bonds Owned by the Bank of England Are Not a Debt Burden, Even When They’re Repaid

A short discussion of government bonds and what happens when a central bank holds them.

QE During the “Everything Mania”: Fed’s Assets at $7.7 Trillion, Up $3.5 Trillion in 13 months

Trying to make sense of what the Fed is up to.

The Full Case Against Ultra Low and Negative Interest Rates

Why unprecedentedly low and negative nterest rates will probably not stimulate demand and may even threaten financial stability.

A Big Fiscal Push is Urgent, The Risk of Overheating Is Small

The $1.9 trillion fiscal stimulus should be large because the need is large.

Is the Post-COVID Boom Going to Bust?

Reading the tea leaves of the economy after Covid…..assuming an “after Covid”.