Category Archives: Federal Reserve

Crisis Risks Looming, UK Edition

While a UK crisis is not yet brewing, there are plenty of worrisome developments that could keep moving in the wrong direction.

Happy Talk About US Slowdown a Recession Warning as China Growth Also Weakening

Recession complacency means things are wobblier than they seem.

Quelle Surprise! Bank Too Big to Fail Problem Not Solved as Lobbyists Scheme to Make It Worse

Bank lobbyists want to weaken bank regulations even after rich stakeholders in recent “not-to-big-to-fail “bank failures were rescued.

How the Fed Created the Post-2008 Global Safety Net for Banks

The “liquidity” support provided by the Fed to megabanks through cross-border lending in fact acted as subsidies.

Jobs Are Up, Wages Less So – and Lower Purchasing Power Could Still Lead the US into a Recession

Quelle surprise! Trends in wages indicate that the economy is less robust than the officialdom and financial press would have you believe.

“Core Services” Inflation Jumps to 2nd Worst Since 1985, “Non-Housing Services” Are Red Hot. Fed’s Job Far from Done

Inflation in the US is still defying the Fed, confirming that the blunt instrument of interest rate increases is not the right tool.

Fed Ponders How Quickly to Try to Inflict More Pain on the Economy to Get Inflation to 2%

Debates inside and outside the Fed as to what it should do next about inflation pick up as its annual Jackson Hole conference approaches.

How to Fix Monetary Policy in Advanced Countries

The monetary policy of major central banks in advanced economies have had negative consequences and thus need to be fixed.

Oil, Gas, Wages, Interest Rates: Biden’s Other 2024 Risks

A supposedly good economy has not helped Biden much and trends such as oil prices do not look to be in his favor.

The Bizarre and Widely Disparaged Fitch Downgrade of US Government Debt to AA+

The financial press and Mr. Market shrugged off the Fitch downgrade of US government debt from AAA to AA+. Why?

Two Overlapping Takes on Inflation

MMT backer Richard Murphy and London finance organ City A.M. have surprisingly simliar views on the causes of inflation but differ on remedies

Central Banks and Income Distribution: Does the Taylor Rule Push Up Rentier Incomes?

An explanation of how a favorite Fed rate setting tool, the Taylor Rule, promotes inequality by shifting income away from workers.

James Galbraith: How Central Bank Myths and Practices Support Financiers and Dollar Hegemony

Sadly, some bank-serving fables are very durable, so James Galbraith has (yet another) go at them.

Wolf Richter: End of Easy Money: Financial Conditions Loosen Again for Junk-Rated Companies. But Some that Long Teetered Finally Go Over the Bankruptcy Cliff

Tightening is a slow process, and there is still a flood of excess liquidity chasing after yield.

The United States’ Financial Quandary: ZIRP’s Only Exit Path Is a Crash

Michael Hudson takes a long, hard look at the origins and costs of the Fed’s ZIRP policy.