Topic: Sound Money Project

Central Banking, Inflation, Monetary Policy, Sound Money Project

What Should the Federal Reserve Do Now?

– September 26, 2023

“Inflation is running above 2 percent by any measure, and a current temporarily higher rate on short-term securities can reassure markets that the Federal Reserve is aiming at a lower inflation rate.” ~Gerald P. Dwyer

Central Banking, Inflation, Monetary Policy, Sound Money Project

Another Rate Hike? Let’s Not

– September 26, 2023

“Interest rate and liquidity data point to the same conclusion: monetary policy is sufficiently tight. Further tightening could cause a painful economic contraction.” ~Alexander W. Salter

Central Banking, Inflation, Monetary Policy, Sound Money Project

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

Central Banking, Inflation, Monetary Policy, Sound Money Project

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

Central Banking, Monetary Policy, Sound Money Project

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

Central Banking, Currency, Financial Markets, International, Sound Money Project

Dollarization and the Lender of Last Resort

– September 11, 2023

“Typically, there is little risk of losing a lender of last resort in countries with troubled currencies that are considering dollarization because such countries don’t have a lender of last resort to lose.” ~ Nicolas Cachanosky

Central Banking, Inflation, Monetary Policy, Sound Money Project

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

Central Banking, Inflation, Monetary Policy, Sound Money Project

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

Economic Trends, Inflation, Monetary Policy, Sound Money Project

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

Central Banking, Inflation, Sound Money Project

Against a 3 Percent Inflation Target

– September 1, 2023

“If the Fed can really make such an elementary error and get away with it, a major prudential reason for keeping it around would no longer hold.” ~ Alexander W. Salter

Economic Trends, Inflation, Sound Money Project

Inflation is Back on Target

– August 31, 2023

“People have renegotiated their wages and purchase orders with those new expectations in mind. To course correct at this late stage would amount to a very painful contraction.” ~ William J. Luther

Central Banking, Free Banking, Monetary Policy, Sound Money Project, Taxation

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