“Most economists think the Fed is unlikely to drastically alter its policy direction, though some of the new members could nudge policy toward more restraint and less activism. Two of the four new voters are viewed as hawkish on inflation, meaning that …
READ MORE“Few economists expect the jobless rate to fall below 9 percent in 2011; the Fed itself projects a range between 8.9 percent and 9.1 percent. That’s why Alice Rivlin, a former Fed vice chairman, expects little from QE2. “I think it was conceived as ins …
READ MORE“The Fed has been buying bonds since early 2009. When a private investor buys bonds, the investor uses cash or sells some existing asset to raise cash and uses that money to buy bonds. The investor might also borrow money from a bank and use the borrow …
READ MORE“The Federal Reserve may need to slow or stop its purchases of U.S. Treasuries in response to an accelerating U.S. economy next year, Philadelphia Fed President Charles Plosser said. “If the growth rate of the economy continues to strengthen and looks …
READ MORE“In layman’s terms, we can think of a swap line as a standing guarantee of U.S. dollar liquidity. If you (as a central banker) ever need greenbacks in a pinch, you know you’ll be able to procure them instantly, no matter how “tight” the open market may …
READ MORE“The bottom line is this: Unlike China where its central government can mandate banks to actually lend to business and individuals, Fed’s two rounds of QE liquidity did not go to where it’s intended; it is instead trapped on banks, and corporations’ ba …
READ MORE“The Federal Reserve’s policy to purchase $600 billion of bonds in a program widely known as QE2 has been mostly ineffective at lowering interest rates and will do little to improve the unemployment rate, according to the exclusive CNBC Fed Survey in D …
READ MORE“The sting of inflation is showing up in the emerging market economies, where rising food prices are stinging the consumer. (Oh sorry I forgot, food inflation isn’t inflation!) China has a de facto USD peg and that policy means that, in the absence of …
READ MORE“This is just another example of how the Federal Reserve has gotten completely and totally out of control. The Fed has become an unaccountable monster that is just running around doing just about anything that it wants to do. It is for some very good r …
READ MORE“There is no laissez faire in fiat money. If the Fed holds the money supply constant, it will be changing the interest rate and the price level. And if it holds interest rates constant, it loses control over the price level and money supply. As a resul …
READ MORE“Mr. Paul takes on the subcommittee post at a time when the Fed is far better known than it was in the 1960s, and after its reputation has alternately soared and plunged. It was given credit for the long booms of the 1990s and earlier this decade, and …
READ MORE“In his speech to the panel, Rep. Ryan declared that Shelton’s pamphlet was “The best 25 pages on money I’ve read in a long, long time.” He chastised the Fed for their claims that they were not trying to monetize the debt, “Well what are they doing rig …
READ MORE250 Division Street | PO Box 1000
Great Barrington, MA 01230-1000
Press and other media outlets contact
888-528-1216
press@aier.org
This work is licensed under a
Creative Commons Attribution 4.0 International License,
except where copyright is otherwise reserved.
© 2021 American Institute for Economic Research
Privacy Policy
AIER is a 501(c)(3) Nonprofit
registered in the US under EIN: 04-2121305