The Federal Reserve (Fed) kept its policy interest rates unchanged in the range of 4.25% to 4.50%, ignoring calls from US President Donald Trump for monetary policy easing. Notably, the majority of FED officials (9 officials) participating in the FOMC committee predict that the average of the base rate range will be 3.875 at the …
Tag: FED
Trump sets limits on Powell and the crucial battle with inflation
“Relief in Prices for American Families and Combating the Cost of Living Crisis” is the title of one of several executive orders issued by President Donald Trump in his first week back in the Oval Office. This executive order directs federal agencies to “provide extraordinary price relief” to the American people by reducing federal regulations …
Trump will crush the dollar to revive the US economy
The new US administration will sail into uncharted waters to address the ongoing economic decline, as President-elect Donald Trump has repeatedly pointed out – the transformation of monetary policy that followed the end of the gold standard is the core of his announced Make America Great Again strategy. The US’s “excessive monetary privilege” has enabled …
Banks’ exposure to government debt will bring economic collapse
Crises are never caused by excessive exposure of businesses and individuals to risky assets. Crises can only happen when investors, governments and households accumulate risk in assets where most people believe there is little to no risk – namely government bonds. The recent sell-off and the underlying trend What does the recent sell-off in US …
Trump’s Tariffs – US Economic Suicide – and the Gold Standard
On November 30, 2024, US President-elect Donald Trump threatened the BRICS nations – Brazil, Russia, India, China, South Africa, Iran, Ethiopia, Egypt and the United Arab Emirates, as well as other states in the process of joining – with 100% tariffs on their exports to the US if they dare to attempt to replace the …
Cutting interest rates early will cause hyperinflation
The Federal Reserve’s recent decision to cut the federal funds rate by 50 basis points to a range of 4.75% to 5%, despite inflation still above its 2% target, apparently politically targeted, has disturbing similarities to the monetary policy mistakes of the late 1970s. Then, under pressure to stimulate economic activity, the Fed eased monetary …
Cutting Interest rates is a path full of Landmines
In a reduction in policy interest rates – for the first time in 4 years – by 50 bp. in the range of 4.75% to 5%, the Federal Reserve (Fed) advanced, in an attempt to stimulate the growth of the US economy, to satisfy investors and to raise the morale of the Democrats, especially the …
FED “Monetary Coup” by Manipulating Yield Curve To Elect Harris
Black Monday, August 5th was a powerful reminder to investors that the stock markets don’t just… go up, they sometimes go down. It wasn’t the end of the world. Wall Street’s 3.0% drop on a daily basis is a big deal, but it doesn’t compare to October 1929, when the stock market fell 21% in …
ECB: Inverted Bond yield curve warns of coming pain and 2008-style recession
The possibility of a major financial crisis, similar to the one that occurred when Lehman Brothers went bankrupt in 2008, is increasing day by day. An important indicator in this regard is the inverted yield curve of US bonds, which is historically associated with recessions. As an example, it is worth noting that from the …
“Monetary policy” – the tool for elites to win by controlling the Economy
In the cases over the decades where Modern Monetary Theory (MMT) has been applied, not a few have been spent reacting to the relevant policies of governments and central banks, focusing on the mix of options and the efficiency they will bring to the economy. There is also a minority, however, who have targeted monetary …