New York Federal Reserve President John Williams said in a politically charged statement on Friday (5/3) that the US central bank needs independence from the White House in order to return inflation to its 2% target. The election cycle threatens the independence of monetary policy as pressure mounts for interest rate cuts to ease lending …
Tag: inflation
The vicious economic cycle continues
The fact that the Federal Reserve left interest rates unchanged, in the range of 5.25% – 5.5%, was of no concern to US stocks. On the other hand, he continues, the promise not to reduce them and to continue monetary tightening exerted downward pressure on bond yields, with the yield of the 2nd falling by …
Inflation – Recession nightmare returns for stockholders
Journalists in the financial press often speak of a Goldilocks economy (“not too hot, not too cold”) in tribute to the Fed’s finesse in manipulating interest rates. They also use the term “soft landing” because the Fed is supposed to manage to tame inflation without causing a recession. However, these narratives, in fact, have no …
The mistakes of the US Federal Reserve may trigger a new wave of inflation
The mistakes of the US Federal Reserve (Fed), which seems to be acting as an “extension” of the fiscal policy of the Democrats and the Joe Biden administration, will lead to an even greater erosion of the purchasing power of citizens through a spike in inflation. 1. The Bernanke-led Fed began quantitative easing just three …
Inflation persistent
With monetary and economic policy deadlocked, the White House is now officially throwing in the towel and admitting that the fight against inflation has been lost – almost ruling out monetary easing as evidenced by the fact that the Federal Reserve Reserve despite strong political pressures due to the election cycle kept interest rates unchanged. …
Hard austerity is coming with over-indebtedness and high inflation
The era of low interest rates and “easy money” is over, despite the dominant narrative in the international financial press of a new round of monetary policy easing that will return economies to pre-pandemic health crisis status and the prophecies of monetary policy makers policy that set the benchmark for monetary policy easing next June …
The nightmare Scenario in Economy, Markets, with Inflation and Bubbles
In early 2002, gold was around $300. The primary goal was to preserve wealth. The Nasdaq had already crashed by 67%, but, before bottoming out, it lost an additional 50%. The total loss was 80%, with many companies going bankrupt. In 2006 the Great Financial Crisis began In 2008, the financial system found itself minutes …
FED – ECB: Inflationary landmine with interest rate cuts – Trump victory in the US is the key scenario
The Bureau of Labor Statistics (BLS) argued that a pick-up in rent inflation—the index rose unexpectedly sharply in January’s CPI—was due to a shift in the data series that could either mean that the change was a structural shift in values or indeed an error which could be fixed at a later stage. Conclusion; No …
How do central banks embellish the image of the economy for the benefit of politicians?
Reports on both sides of the Atlantic of ending the current cycle of monetary easing as a central policy option were probably a smoke screen to cover up the poor state of the financial system. The analyzes that are circulating refer to the prospect that the Fed and the ECB return from the spring of …
The Painful lessons of a three-decade Stock Market Disaster
Japan’s Nikkei 225 is on the verge of surpassing its all-time highs of 1989, ending a 34-year drought for investors in the Land of the Rising Sun. That in itself is cause for celebration on the one hand but also a deeply flawed way of understanding how markets work – both in Japan and everywhere …