Wolf Richter: Atlanta Fed ‘Sticky CPI’ Soars, Hottest Inflation Since July 2008
A jump in “sticky CPI” suggests the Fed may be close to getting the data excuses it needs to raise interest rates.
Read more...Category Archives: Federal Reserve
Wolf Richter: Afraid of Losing Trillions, Wall Street Fights Fed Rate Hikes
Wall Street working up to another tantrum to head off a rate hike from the Fed. Will it work again?
Read more...Exit Strategy, Part One: ZIRP
Why exit from ZIRP has to precede exit from QE.
Read more...Federal Reserve Goes Silent About Our Freedom of Information Request on Greece
Not surprisingly, the central bank has gone mum about a Freedom of Information Act request we submitted over two months ago.
Read more...Wolf Richter: How Soaring Housing Costs Impoverish a Whole Generation and Maul the Real Economy
Housing costs are beyond the reach of many middle class earners. And while that is no news, housing has been the engine of past recoveries. So inflated home prices are part of why the economy will stay mired in low growth.
Read more...Home (and Solvency) Bias at the Fed
A recap of the marquee talk at the “Finance and Society” conference in Washington last week, between Janet Yellen and Christine Lagarde.
Read more...Former Greenspan Fan Paul Krugman Now Calls Greenspan “Worst Fed Chairman Ever”
Why does Paul Krugman find it so difficult to admit to past error?
Read more...Wolf Richter: “Smart Money” Prepares to Profit from Bond Market Rout
“If I had an easy way and a non-risk way of shorting a whole lot of 20- or 30-year bonds, I’d do it,” said our favorite uncle Warren Buffett on CNBC. These kinds of bonds have been on a terrific bull run ever since Paul Volker, as Chairman of the Fed, cracked down on inflation. But now, even the avuncular face of capitalism would bet against them.
Read more...First Quarter GDP Likely Negative as Trade Deficit Soars
By David Dayen, a lapsed blogger. Follow him on Twitter @ddayen. Because of the blinkered way we talk about the economy in this country, news that the trade deficit widened in March well above consensus expectations will undoubtedly be met by cries that we must create more free trade deals to counteract that. Of course, […]
Read more...At INET Conference, Warren Adds Two Pieces to Her Financial Reform Framework
The reason I’m filling in today and tomorrow is that Yves is in Washington for the INET Finance and Society conference, which is unique because it features a dozen and a half speakers, every one of them a woman, from Fed Chair Janet Yellen to IMF Chair Christine Lagarde to the SEC’s Kara Stein to CFTC’s Sharon Bowen to Treasury’s Sarah Bloom Raskin to many more, from the U.S. and around the world. Anat Admati of Stanford University organized the event, and you can watch the webcast tomorrow at this link. Maybe you’ll spy Yves stalking the halls.
Read more...How Much Did Your Economy Suffer in the First Quarter?
We poll members of the commentariat for readings on the state of their local economy.
Read more...The “War on Cash” in 10 Spine-Chilling Quotes
The war on cash is escalating.
Read more...Quantitative Easing and The Great Recession: Who Wins? Who Loses?
The Federal Reserve (“the Fed”), the central bank of the United States, is at the center of a big political fight, once again.
Read more...Nobel Prize Winner Robert Merton Slams Fed for “Negative Wealth Effect” Policies
Nobel Prize winner Robert Merton and Arlin Muralidhar have charged ZIRP and QE happy central banks with economic malpractice.
Read more...Who Is Saudi Arabia Really Targeting In Its Price War?
Saudi Arabia is not trying to crush U.S. shale plays. Its oil-price war is with the investment banks and the stupid money they directed to fund the plays. It is also with the zero-interest rate economic conditions that made this possible.
Read more...