Published: Oct 24, 2024 We need to start by asking ourselves the following questions: This angst was reflected in GOP primaries in the last few months where Donald J Trump has surprised the establishment, and the biased Mainstream Media, by winning the Republican nomination. We feel that Donald J Trump is going to be the solution to our problems which can be attributed to the following reasons: 1. The Economy: President Biden took over an economy that was already recovering strongly from the Covid-induced shock of 2020. Demand and employment had recovered but the Biden Administration chose to keep
Category: US Fiscal Policy
Banking Regulations, US Federal Government Oversight, US Federal Reserve, US Fiscal Policy, US Monetary Policy
Hobson’s Choice for the Fed – Raise Rate or not this time?
Hobson’s Choice is defined as “a choice of taking what is available or nothing at all” which is where we feel the Fed is standing at the present moment. The Fed currently holds its benchmark funds rate, which banks charge each other for short-term lending, is at 4.58% today compared to 0.33% last year and is lower than the long-term average of 4.60%. We are in this position because of tremendous volatility in the Financial Markets since last week with the failure of three medium sized US banks viz. Silicon Valley Bank, Signature Bank and Silvergate Bank along with well publicized
Fed Speak: Pause vs. Pivot
(This post was posted in Nov 2022) The Federal Reserve’s November 2022 statement contained dovish language, but Fed Chair Powell warned investors not to expect the Fed to stray from its full focus on fighting inflation. Upside inflation led the U.S. Federal Reserve to hike its policy rate by 75 basis points (bps) for a historic fourth time. This brought the fed funds rate up to a 3.75%–4% range, meaningfully above the Fed’s 2.5% median long-run estimate, as inflation continues to justify monetary policy with the objective to tame inflation. In spite of continued inflation, the Fed also indicated
Economics, Financial Markets, US Federal Government Oversight, US Fiscal Policy, US Monetary Policy, US Stock Market
Fed’s Good Call today – Thank you for signaling a more data driven, cautious and market-friendly approach
(Published January 30, 2019) We are extremely delighted and relieved, in equal measure, that the Federal Reserve held its key interest rate steady today. “The case for raising rates has weakened somewhat,” Fed Chairman Jerome Powell said at the post FOMC Meeting news conference. He also indicated that a “wait and see attitude with patience is warranted”. “The U.S. economy is in a good place, and the current policy stance is appropriate” he said, but added there’s growing evidence of “crosscurrents,” such as slowing growth in China. “In light of global economic and financial developments and muted inflation pressures, the
“To Raise or not to Raise (Rates) is the Question….” – Conundrum facing the Fed this month
Published December 10, 2018 “To Raise or not to Raise (Rates) is the question…” – would best describe Federal Reserve’s position, if we were to apply the Bard of Avon’s immortal quote from Hamlet, to the likelihood of hiking the Interest Rate in their December 19 FOMC Meeting. Trade war fears along with the specter of a possible economic slowdown have sent markets down significantly in the last couple of weeks. Consequently, it is reported by CME that Investors currently see a 73.2% chance of a rate hike following the December Fed meeting, while a week ago, the probability for