Tag Archives: Federal Reserve mandate

Can U.S. Interest Rates Ever Rise?

historical U.S. inflation rate

While interest rates have risen from depths that saw the 10-year treasury yielding 1.36% on 7/3/16, to 2.25% today, given Fed plans to tighten and pledge to shrink its balance sheet should rates be even higher? The Fed will typically engage in the monetary policy of tightening and lift the Fed Funds rate when the two […]

The Central Bank Casino…BOJ, Fed, Real Estate And Mortgage Rates!

Zirp and Nirp

(Note: This article also appears at econintersect.com) This week both the Bank of Japan and the Federal Reserve will be meeting to chart the future course of interest rates! In the U.S. where prior to the recent small interest rate hike ZIRP or zero interest rate policy had been in place, speculation over whether the Fed will raise or stand […]

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 […]