Category Archives: Federal Reserve

“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.

The New York Times Thinks Worker Suffering Is a Fair Price for Lower Inflation

Per the Times, inflation must be tackled, and the only way to do so is through lowering incomes and potentially jacking up unemployment.

IMF Confirms that Profits Are Driving Inflation

It’s now undeniable that corporate profits are playing a big role in our current inflation.

A New Third World Debt Crisis? The Need for System Change

Emerging economies look to be on the verge of a whole lotta debt hurt. Why does this happen to them so often?

Why Interest Rate Rises Are Fueling Inflation

Is central bank inflatin medicine even worse than it seems?

Powell on the New Hawkishness in the Dot Plot and on Inflation: “We See that it Tells Us that We Need to Do More”

The Fed’s Powell: Core inflation “has not really moved down. It has not reacted much to our rate hikes. We’re going to have to keep at it.”