At the hearing before Congress on Thursday, March 25, 2021, Fed Governor Jerome Powell was adamant that any resurgence of inflation in the US would be temporary (inflation above 2% for 2021), transitional and would in no way affect the Fed’s target of average inflation of 2%. But rising Federal Reserve bond yields point to …
Tag: FED
Commodity Prices at New Heights for 2021
Given that the Covid-19 pandemic caused the cessation of all kinds of travel, it made sense that demand for oil would drastically reduce during the pandemic (2020). But other commodities have had particularly good returns over the past year. Low interest rates have made priceless metals such as gold valuable and incredibly attractive, passing $2000 …
Pandemic Forces Governments to Adopt Socialist Economic Policies
The ever-increasing implementation of the monetary policy, which, due to the pandemic and its measures to deal with economic shutdowns and social isolation, in other words the continuous printing of money, is being used to cover the damage caused to economies while providing state aid to both workers and businesses (in the form of subsidies …
Pandemic Forces Governments to Adopt Socialist Economic Policies
The ever-increasing implementation of the monetary policy, which, due to the pandemic and its measures to deal with economic shutdowns and social isolation, in other words the continuous printing of money, is being used to cover the damage caused to economies while providing state aid to both workers and businesses (in the form of subsidies …
How the US and the World’s Countries will avoid the Economic Armageddon caused by the Lockdown of Coronavirus Pandemic
The terrifying economic downturn that the developed economies of the world are gradually facing, especially that of the US, due to the Covid-19 (Coronavirus) pandemic is much worse than the global financial crisis of 2008 caused by the collapse of the US investment bank Lehman Brothers Holdings Inc. This is because the current crisis is …
Governments and Central Banks React while the World Economy Enters in Recession Coma
The EU last week announced that the enforced rules on budgetary discipline are being suspended in order the member-countries of Eurozone to deal drastically with the upcoming recession due to the Covid-19 (Coronavirus) pandemic. The US Senate House on March 25 approved the $2trillion fiscal package proposal of US President Donald Trump to supprot the …
Trust Economics Forecast for 2020
The end of 2019 varied the forecasts and found international bond and equity markets strong and higher price levels than at the beginning of 2020. The U.S. stock market index S&P 500 rose > 28,5%. Germany’s DAX stock market index rose > 26,15%. Japan’s Nikkei 225 stock market index rose > 19,02%. China’s SSBC stock …
The low interest rates, their consequences & the returns of assets as an investment selection criterion
In EU member countries (e.g. Denmark, Germany) commercial banks are proceeding to mortgage loans with a negative lending rate. In other words, these banks grant discounted housing loans to borrowers and since the repayment of the mortgage loan not only will not be paid interest, but the borrower will repay capital in total less than …