Category: US Federal Reserve Bank
The analysis published under this category are as follows.
Friday, December 21, 2018
FOMC Update - Jerome ‘Dead Eye’ Powell / Interest-Rates / US Federal Reserve Bank
By: Gary_Tanashian
One of the most disturbing scenes in the series Breaking Bad was when Todd shoots and kills a boy on a dirt bike after he witnessed Heisenberg, Jesse and Todd heist 900 gallons of methylamine. Jesse: “Todd, that Opie Dead Eyed piece of shit…”
That is similar to the feeling I got after the Fed hiked the funds rate as expected, but then declined to offer the stock market much relief for its ongoing temper tantrum.
What’s this? The Fed is not doing as the vast majority of market participants expect it to do? The Fed is not taking active measures to boost asset prices?
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Thursday, December 13, 2018
Trump vs the Fed: Who Wins? / Interest-Rates / US Federal Reserve Bank
By: Richard_Mills
Who controls the US economy? The “power of the purse” resides within the US Congress and the powers to set fiscal and monetary policy are delegated to the US Central Bank, otherwise known as the Federal Reserve.
While the success of US Presidents often depends on how well the economy does during their terms, in fact they have little direct influence on it. The President can guide the economy and put his stamp on unlimited pieces of legislation, but he must work with Congress and the Federal Reserve in order to execute his agenda.
To demonstrate just how powerless the President is over the economy, you need only look at Article II of the US Constitution which outlines the responsibilities of the Executive Branch:
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Wednesday, November 07, 2018
Arguing About Fed Policy Is A Waste of Time / Interest-Rates / US Federal Reserve Bank
By: Kelsey_Williams
When government (or a President) claims that Federal Reserve policy is hurting the economy, they are either grandstanding, or are ignorant about the function and purpose of the Federal Reserve.
No one wants to see the economy suffer, anymore than they want to see a plague, or infectious disease, affect millions of people. And no President wants to be in office to preside over a recession or depression. But neither can they exercise any power or influence regarding the implementation of Fed policy; particularly when it comes to interest rates.
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Tuesday, November 06, 2018
Trump's War on the Fed / Politics / US Federal Reserve Bank
By: Ellen_Brown
October was a brutal month for the stock market. After the Federal Reserve’s eighth interest rate hike, on Sept. 26, the Dow Jones Industrial Average dropped more than 2,000 points, and the NASDAQ had its worst month in nearly 10 years. After the Dow lost more than 800 points on Oct. 10 and the S&P 500 suffered its first weeklong losing streak since Trump’s election, the president said, “I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy.” In a later interview on Fox News, he called the Fed’s rate hikes “loco.” And in a Wall Street Journal interview published on Oct. 24, Trump said he thought the biggest risk to the economy was the Federal Reserve, because “interest rates are being raised too quickly.” He also criticized the Fed and its chairman in July and August.
Monday, November 05, 2018
Is President Trump Right About the Fed? / Politics / US Federal Reserve Bank
By: Harry_Dent
While Larry Kudlow (Treasury Secretary and Chief Economic Cheerleader) assures us that Trump is NOT interfering with the Fed, our dear president has proclaimed that our Central Bank is “crazy” for raising rates.From his, ahem, unique world view, he believes they’re trying to wreck his new gravy train economy… the one he created with major tax cuts ($1.5 trillion), major repatriations from overseas ($2 trillion), deregulation, and a lot of positive talk about 4% to 5% growth again…
But, with no fear of sounding like a broken record: sustaining growth rates at that level are demographically IMPOSSIBLE!
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Tuesday, October 16, 2018
Federal Reserve And The Markets / Stock-Markets / US Federal Reserve Bank
By: Kelsey_Williams
Analysis and opinions of the financial markets vary depending on who is doing the analyzing. The most critical element that affects the song is the singer.
There is nothing wrong with that. But we should be aware that our own prejudice clouds our perspective. However, there is more that is not so obvious. With that in mind, lets take a look at things.
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Sunday, October 14, 2018
Fed is Doing More Than Just Raising Rates / Interest-Rates / US Federal Reserve Bank
By: Rodney_Johnson
Over the past month the 10-year Treasury bond yield has jumped from under 3.00% to 3.23%, sending tremors through the equity markets. By now you’ve heard/read/thought about the usual suspects.As interest rates move higher, equity investors searching for income finally (finally!) have a viable alternative to stocks.
As interest rates move higher, consumers using borrowed funds to purchase homes, cars, and stuff on credit cards will have to pay more, which should curb their economic appetite.
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Sunday, October 07, 2018
The Latest Double Standard from the Fed / Interest-Rates / US Federal Reserve Bank
By: Rodney_Johnson
Collectively, we just got screwed again, and I bet most people didn’t even know it. It happens so many times, particularly at the hands of the Federal Reserve, it’s hard to keep track.A new bank called The Narrow Bank, or TNB, recently applied for an account with the Fed.
This would give the bank recognition by a local reserve bank, in this case New York, and access to its services, like distribution of currency, check processing and other forms of electronic payments.
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Tuesday, September 18, 2018
Trump’s Backdoor Power Play to Rein In the Fed / Politics / US Federal Reserve Bank
By: MoneyMetals
“Just run the presses – print money.”
That’s what President Donald Trump supposedly instructed his former chief economic adviser Gary Cohn to do in response to the budget deficit. The quote appears in Bob Woodward’s controversial book Fear: Trump in the White House.
Trump disputes many of the anecdotes Woodward assembled. But regardless of whether the President used those exact words, they do reflect an “easy money” philosophy that he has expressed many times before.
Monday, September 10, 2018
How Trump Could Fire Powell and Rebuild the Fed / Politics / US Federal Reserve Bank
By: John_Mauldin
BY PATRICK WATSON : In recent weeks, Trump criticized Federal Reserve Chairman Jerome Powell several times. He doesn’t like that Powell is leading the Fed to raise interest rates.Past presidents avoided such comments so they wouldn’t appear to be interfering. But Trump doesn’t care about appearances.
The Fed is somewhat insulated from electoral politics. The chair and board members have fixed terms. Its composition changes slowly... but it doesn’t have to.
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Tuesday, August 14, 2018
The Federal Reserve: Secretly Sticking It to Americans for Over 100 Years / Interest-Rates / US Federal Reserve Bank
By: MoneyMetals
In the aftermath of the 2008 Financial Crisis, the private Federal Reserve bank cartel was front and center as a target for public outrage.
Former U.S. Congressman Ron Paul’s "End the Fed" message suddenly resonated. Americans hated Fed officials bailing out the banksters – richly rewarding them for crooked and irresponsible behavior which helped create the crisis.
But years have passed. Americans have been enjoying the expansion stage of the next great bubble. The central planners at the Fed and their colleagues at the nation’s largest banks have been busy stimulating the real estate, equity, and bond markets.
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Wednesday, August 01, 2018
Trump Declares War on the Fed / Interest-Rates / US Federal Reserve Bank
By: Michael_Pento
It appears when it comes to fighting the old Washington establishment---comprised of the deep state and the Federal Reserve--Mr. Trump is getting sucked into the vortex of the D.C. swamp rather than draining it. The hope was for our “Disrupter in Chief” to be more concerned about our children’s future than his own; and for his focus to span beyond the next election cycle. Instead of allowing consumers to finally receive a real return on their savings; and to let asset bubbles seek a level that can be supported by the free market, Trump has chosen to breach a boundary that has been essential to providing hope for the future solvency of our nation.
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Monday, June 25, 2018
Powell is Playing “Chicken” With $10 Trillion in $USD Shorts / Interest-Rates / US Federal Reserve Bank
By: Graham_Summers
Thus far in his tenure as Fed Chair, Jerome Powell has emphasized that he is more concerned with the real economy than the financial markets.
Put another way, the Powell Fed, unlike the Bernanke or Yellen Feds before it, is willing to sacrifice stocks in the name of normalizing monetary policy provided the economy can withstand it.
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Tuesday, April 17, 2018
Why the Fed is Worse for the Market than Trade Tariffs / Interest-Rates / US Federal Reserve Bank
By: Rodney_Johnson
“Always tell the truth.”In addition to being number eight on the Top 10 list of things we should always do, being truthful is just a great way to avoid trouble in life.
You never have to remember what lie you told to whom, and you never have to make up more lies to cover those you’ve already put out into the universe.
But we don’t.
I don’t know a single person who is completely honest. And this goes way beyond, “Do these clothes make me look fat?”
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Tuesday, March 27, 2018
The Federal Reserve – Purpose And Motivation / Interest-Rates / US Federal Reserve Bank
By: Kelsey_Williams
With each succeeding day, obsession with the Federal Reserve continues. And the obsession is a good indicator of just how misinformed most of us are.
This is true with respect to various policies, statements, and actions; and includes comments made by board members, either in speeches or interviews. But it is also true regarding purpose and motivation.
To a large extent, it is a matter of perception. Some, maybe most, people see the Fed as the lead driver. There is an assumed aura of authority and control. On all matters economic, we look to them for direction. But where are they taking us?
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Wednesday, December 13, 2017
2 Charts That Might Define the Fed’s Jerome Powell Era / Stock-Markets / US Federal Reserve Bank
By: F_F_Wiley
In September, we proposed a theory of the Fed and suggested that the FOMC will soon worry mostly about financial imbalances without much concern for recession risks. We reached that conclusion by simply weighing the reputational pitfalls faced by the economists on the committee, but now we’ll add more meat to our argument, using financial flows data released last week. We’ve created two charts, beginning with a look at cumulative, inflation-adjusted asset gains during the last seven business cycles:
Saturday, December 09, 2017
Jerome Powell vs. Janet Yellen / Interest-Rates / US Federal Reserve Bank
By: Arkadiusz_Sieron
As expected, Donald Trump nominated Jerome Powell as the next Federal Reserve Chair. He is often perceived as a merely Republican version of Yellen. But is that really the case? Let’s analyze in a more detailed way what impact on gold Powell’s term as the head of the U.S. central bank would mean for the gold market.
Friday, December 08, 2017
The US Fed Might Shrink to Two Members in 2018 / Politics / US Federal Reserve Bank
By: John_Mauldin
BY JOHN MAULDIN : In talking with some of my Fed-watching friends, it appears the world’s most important central bank is about to experience some potentially profound changes—not just in personnel but more importantly in the kind of people who lead it.
Those changes could, in turn, have some serious economic impacts, so it’s worth taking a deeper look.
But before we get into the impending changes at the Fed, let’s quickly review how the organization works.
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Thursday, December 07, 2017
Why Bank Presidents Could Rule the Fed Next Year / Politics / US Federal Reserve Bank
By: John_Mauldin
There’s a possibility the Fed will shrink to three—or even two—governors next year. I wrote about this in great length in my latest Thoughts from the Frontline, and I highly suggest you give it a read.
Among other things, the missing governors could have an enormous impact on monetary policy. But before we delve into the implications again, I must explain the Fed’s Byzantine organizational scheme.
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Tuesday, November 28, 2017
The Fed Is at the Height of Monetary Policy Lunacy / Interest-Rates / US Federal Reserve Bank
By: John_Mauldin
How often do central bankers, regulators, corporate leaders, lawyers, politicians, and ordinary investors make the same mistakes over and over again? All the time.
If we stopped erasing our memories and for once learned from our mistakes, we might make better progress. But no, we must always step on the same rake.
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