The Federal Reserve has two fundamental mandates: maximum employment and stable prices with an upper limit it sets for an acceptable inflation rate! When employment reaches a level that’s known as full and a strong economy results in a shortage of available qualified workers, upward wage pressure can cause the inflation rate to rise. Similarly, when commodity prices […]
Did Janet Yellen raise the fed funds rate in December only to turn around and lower it now? With the selloff in the equity market, sharp decline in the price of crude oil and uncertainty surrounding the U.S. and global economies, the LAST thing we need is for a crisis of confidence to develop concerning […]
In other words, will the Fed raise rates? On its surface the October jobs report blew away expectations showing that the economy added 280,000 jobs when the ‘experts’ and analysts were expecting only a 180,000 job add! In addition the unemployment rate ticked down to 5% from 5.1%. These results would make even the most […]
Will the Fed or won’t the Fed raise its benchmark rate 1/4 of 1% sometime this year or next? That singular question has transfixed and captivated the world’s markets, politicians and corporate decision makers since the ‘great recession’ and the subsequent Fed move to bring the target fed funds rate down to a range of 0-.25%. […]
How will the Fed’s dual mandate of stable prices and maximum employment affect the future direction of interest rates! If and when an important macroeconomic Federal Reserve indicator fails to be relevant but that fact is not fully recognized by the Fed, how will decisions concerning interest rates based on that failed data input impact the real […]
