Topic: Monetary Policy

Fed Continues to Signal Another Rate Hike

– September 20, 2023

“If core inflation is more or less on track, why are most FOMC members projecting another rate hike?” ~William J. Luther

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Is Dollarization a Mirage?

– September 18, 2023

“Dollarization would serve as a firewall, protecting the private sector from the fiscal policy fallout.” ~Nicolas Cachanosky

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David Malpass on Inflation and Slow Growth

– September 16, 2023

“If we try to push supply-side economics as an inflation-reduction strategy, we’re setting ourselves up for failure by banking on a problem that’s largely solved.” ~ Alexander W. Salter

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Don’t Panic over the Latest Inflation Numbers

– September 14, 2023

“To put it plainly, monetary policy is already tight enough. The Fed’s job now is to stay the course.” ~ Alexander W. Salter

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Without Rules, the Fed Rules

– September 12, 2023

“Committing to a rule significantly lowers the cost of evaluating Fed policy. And lowering the cost of evaluating Fed policy could make it very clear to a great many people that the Fed is up to no good.” ~ Alexander W. Salter

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What’s the Harm in Raising the Inflation Target?

– September 5, 2023

“In addition to increasing workers’ real tax burden, raising the inflation target reduces workers’ real wages by reducing the demand for their labor services.” ~ Bryan Cutsinger

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Monetary Policy Remains Sufficiently Tight

– September 4, 2023

“There’s no returning to the pre-pandemic trend for the price level. We’re left with permanently higher prices. Hopefully, the Fed continues to bring inflation down gradually.” ~ Alexander W. Salter

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The Floor System Fails

– September 4, 2023

“During normal times, when inflation is low and stable, the floor system increases the burden on taxpayers. The burden is even larger when inflation is high, as it has been over the past two years.” ~ Louis Rouanet

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Why Are Mortgage Rates So High?

– September 2, 2023

“Interest rates on mortgages were 2.66 percent just two and a half years ago. Why the sudden increase in rates? The Federal Reserve increased the money supply and generated the worst inflation in many years.” ~ Gerald P. Dwyer

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The Costly Late Arrival of FedNow

– August 29, 2023

“Policy makers should ensure that the US payment landscape is efficient, accessible, and beneficial for all stakeholders involved with as little government involvement as possible.” ~ Nicolas Cachanosky

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The Rise of BRICS-11

– August 28, 2023

“The explicit BRICS goals, which include expanding the reach of the New Development Bank, closer trade cooperation, and a dollar-alternative currency are undoubtedly viewed as a means to alleviate the perennial woes of economic mismanagement. And, of course, to slip Western spheres of influence.” ~ Peter C. Earle

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Whipped Inflation Now

– August 26, 2023

“The battle for 2 percent inflation has already been won. Fed officials should acknowledge and celebrate the victory.” ~ William J. Luther

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