The Federal Reserve on Wednesday projected that interest rates will remain near zero through 2022 and pledged to continue supporting a U.S. economy devastated by the coronavirus pandemic and the related lockdowns. The Federal Open Market Committee, in a unanimous statement, reiterated previous guidance that the benchmark federal fund rate will stay at a range […]
What in the World Is the Federal Reserve Thinking???…
You don’t use up all of your ammunition before the battle even begins. The U.S. economy has not even officially entered recession territory yet, although many experts are definitely anticipating one in 2020. When that recession arrives, the Federal Reserve is going to want as much ammunition to fight it as possible. So I was […]
At Press Conference, Fed Chair Powell Refuses to Answer Whether Wall Street Banks Are Too Big to Manage…
Following a lack of liquidity on Wall Street, which necessitated the Federal Reserve having to provide $53 billion on Tuesday and another $75 billion on Wednesday to normalize overnight lending in the repo market, the Chairman of the Fed, Jerome (Jay) Powell held his press conference at 2:30 p.m. yesterday. The press gathering followed both […]
Fed Cuts Rates, Cites Weakening Exports and Low Inflation…
The Federal Reserve on Wednesday cut its benchmark interest rate by 25 basis points, citing weakening exports and low inflation. The reduction, which lowered the federal funds rate to a range of 1.75 percent to 2 percent, was the central bank’s second in as many meetings. In July, the Fed lowered rates for the first […]
Trump Blasts Fed Chief Powell: No Guts, No Sense, No Vision!…
POWELL: FED IS NOT FORECASTING OR EXPECTING RECESSION…
Federal Reserve Chairman Jerome Powell said Friday the central bank’s pivot this year to lower interest rates has helped sustain U.S. economic growth. Speaking during a forum in Zurich, the central bank leader gave mostly positive reviews to where the U.S. stands now, even while much of the rest of the world weakens. “The Fed […]
Here it Comes: The Most Important Week of The Year…
The “most important week of the year” is finally here, when in addition to an avalanche of economic data including US payrolls, European PMIs, BOE and BOJ announcements, and the restart of US-China trade talks, we are in for a historic treat with the Fed set to cut rates for the first time in over […]
Powell’s Press Conference Draws Rave Reviews for Simplicity of the Fed’s Message…
Fed Keeps Interest Rates Steady, Maintains Its ‘Patient’ Policy Stance…
The Federal Reserve announced that it had left its benchmark federal-funds rate unchanged, after its two-day policy meeting concluded May 1. The central bank signaled more patience ahead. Fed policymakers gathered on April 30 and May 1 to assess the economic and financial conditions, and decide on monetary policy. As widely predicted, the central bank […]
OPINION: This Is the Real Reason Why the U.S. Economy Isn’t in Recession Danger Now by Ed Yardeni & Melissa Tagg…
The yield curve is first and foremost predicting the outlook for Fed policy rather than the next recession. My research has confirmed this conclusion, as does a recent Fed study. In my recent book, Predicting the Markets, I wrote: “The Yield Curve Model is based on investors’ expectations of how the Fed will respond to […]