Category Archives: Federal Reserve

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.”

How This Regional Bank Mortgage Lender Crisis is Different

Every bank crisis has its own overarching narrative and streams of sub-narratives that course through the marketplace day to day.

The Extraordinary Generosity of Central Banks Towards Banks: Some Reflexions on Its Origin

Central banks provide even more gimmies to banks than you likely realized.

The Fed’s Interest Rates Are Still Fueling Inflation Rather Than Dousing it, and People Getting Used to this Inflation

Contrary to popular opinion, Fed interest rate policy is still permissive, if not quite as permissive as before.

“Crypto Is a Fraud on the Public”: Financial Watchdog Explains Ties Between Crypto and the Banking Crisis

Dennis Kelleher of Better Markets explains why crypto is the last place anybody should be running to for safety.

Big Food Raking in Huge Profits From Price Hikes as US Hunger Persists: Analysis

Big food company profit-goosing price hikes confirms that the Fed is barking up the wrong tree in going after labor.

Why I’m Skeptical of Powell’s Claim Red-Hot Rent CPI Will Just Vanish: Landlords Report the Opposite, Even for April

Oopsie! Still perceived-to-be-high housing prices, thanks to higher mortgage rates, is a landlord’s wet dream. Who’d have thunk it?

Financial Instability in 2022-2023: Causes, Risks, and Responses

Authorities acted promptly and decisively, and each crisis required a unique solution, especially the larger crises

4 US Banks Crash in 2 Months: Banking Crisis Explained by Economist Michael Hudson

US banks keep falling over but the Fed is curiously indifferent.