Kenneth Rogoff, the Professor of Economics at Harvard University, is stuck in a time warp where he cannot think out of the box even once. He is telling the central banks that the next recession they will have to resort to negative interest rates and they should prepare now. Despite the fact that negative rates have […]
This coming week is what we would call in horse racing a trifecta with former FBI director James Comey’s testimony, the U.K. election, and the ECB monetary-policy meeting. Then our capital flow models seem to be picking up European buying of both US shares and bonds taking advantage of a rally in the Euro. The […]
While the Fed may be raising rates, there is still a flight to quality underway that is giving a bid to US Treasury issues. Low Treasury yields may remain the norm even if the Federal Reserve raises rates again. At about 2.25%, 10-year yields have dropped to 2017 lows, even with the central bank signaling an […]
There are those in the Fed who are desperate to find an excuse to raise interest rates. The one being bantered about is the Fed needs to raise rates to help the poor. Yes – you heard correctly. To protect the poorest Americans, the argument is that the Fed needs to raise interest rates faster […]
One of the greatest monetary experiments in financial history has been the global central bank buying of government debt. This has been touted as a form of “money printing” that was supposed to produce hyperinflation, which never materialized as predicted by the perpetual pessimists. Nevertheless, the total amount of Quantitative Easing (QE) adding up the […]
The stock market, gold, silver, and oil all rallied when the Federal Reserve delivered the widely expected increase in its benchmark interest rate on Wednesday, the Ides of March. It said that the domestic economy remained on a path of slow and steady growth. In a statement the Fed said that the United States economy […]
James Bullard, president of the St. Louis Fed, in a March 3, 2017 interview with the Wall Street Journal, “The recent data aren’t that different from what they were at the time of the January meeting and we didn’t really use the January meeting to set up a March rate hike.” He also offered an important response to […]
This is the year of political hell. The question is not about supporting one side or the other. This is a time that calls for us not to be small petty creatures but a case that requires rational human beings, which seems to be more impossible with each passing day. Never did there arise a […]
I have warned that rates will rise BECAUSE the Federal Reserve will be criticized if they fail to do so when they are faced with a stock market that is rising. However, while one by one, several Fed officials have all signaled in recent days that the Fed is ready to resume raising interest rates […]
The question of when will central banks fail is a popular one that comes in. Suffice it to say, the turmoil will hit Europe first. While so many people blame the Fed for all sorts of things, you must realize that Roosevelt usurped the Fed during the Great Depression and imposed a single interest […]
