Tag Archives: Janet Yellen

The Fed And The Phillips Curve

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 […]

Bond Yields, The Economy And Real Estate: Are They Sustainable At Their Current Levels?

sovereign debt

Last week Fed Chair Janet Yellen decided, in the face of non-crisis level U.S. economic statistics, to leave interest rates unchanged at the economic crisis level of 0%! Her rationale was believable for some and hard to understand for others but, for anyone who listened and for those who didn’t, she mentioned non-U.S. economic factors […]

Janet Yellen Stands Pat On Rates – An Analogy

For those who may not have heard, yesterday afternoon the Fed announced that it will leave its key interest rate at 0%! This move came as a surprise to some and as no surprise to others. I count myself as being in the ‘not surprised’ camp as I expressed in an article from about one […]

Will The Fed Normalize Rates? Three Reasons Why It Won’t (Can’t)!

Will the Fed announce that it is raising rates a quarter point at the FOMC meeting that ends on September 17th, or will it stand pat? Inquiring minds want to know, particularly in some of the interest rate and economically sensitive sectors such as investments, banking, real estate and mortgages. But, as I conjectured in an […]

U.S. Business In The Hands Of Federal Reserve Academicians!

What is it that can and often will separate successful businessmen and investors from those who may not be? Often it’s the ability to ‘pull the trigger’ on decisions that may not be that easy to make. In the stock market the best time to buy is often the very time that everyone else is […]

Question: Can ZIRP + Recession = Economic Death Spiral?

This is a question worth pondering particularly with the rampant speculation over what the Fed will do with interest rates this month! First the obvious thought, what is ZIRP? In a nutshell…’Zero interest-rate policy (ZIRP) is a macroeconomic concept describing conditions with a very low nominal interest rate, such as those in contemporary Japan and, […]

The Federal Reserve Needs To Raise Rates So That It Can Cut Rates!

Confused? The Fed raising interest rates in order to be able to cut them at some point in the future is the rationale I am hearing on the business news!  The reason is that if (when) the United States economy heads into another recession, the Fed will have ammunition available to be able to take proactive […]

Dilbert Explains Economics And Economists!

title insurance,NYC,Long Island,Brooklyn,Manhattan,real estate

If you have ever watched CNBC, listened to Bloomberg on your way to the train station or tried to decipher a Fed Chair’s press conference, what I am about to say will come as no surprise! That the economic ‘experts’ will sometimes, okay most of the time, okay all of the time, attempt to use […]

The Shadow Banking System And Why The Fed CAN’T Raise Interest Rates!

shadow banking,leverage,interest rates

Janet Yellen discussed Fed policy and interest rates yesterday and, with the removal of the word ‘Patient’ from the current Open Market Committee statement, financial markets roared! Of course when it comes to Fed-speak the removal of one word, in this case ‘patient’, reminds one of another quite famous parsing of words when the phrase […]

US Economic Calendar – Week of March 2, 2015

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The US Economic Calendar For The Week Of March 2, 2015 With the Economic Calendar Edition having been on temporary hiatus since the end of 2014, what is striking is how the more things change the more they seem to stay the same! Interest rates remain low, the US economy muddles along at a disappointing rate […]