Category: US Federal Reserve Bank
The analysis published under this category are as follows.
Saturday, June 01, 2019
Finding Record Investor Profits Hidden In The Fed Minutes / Interest-Rates / US Federal Reserve Bank
By: Dan_Amerman
Sifting through the minutes of the Federal Open Market Committee (FOMC) to look for signals of changes in policy is a fixation for the financial media and the investment industry. Because both the stock and bond markets can reverse directions based upon the Fed's intentions for the direction of Fed Funds rates, there is an intense focus on finding signals for those intentions and whether the signals are changing.
However, like generals preparing for the last war - there is a strong case to be made that most analysis of the FOMC minutes is focusing on the details, while missing the big picture for the next recession (which could be growing more imminent).
As explored herein, the Fed itself is as much focused on how to change the "SOMA" to enable the strongest form of "MEP" in the event of another recession, as it is on Fed Funds rates.
When we get past the jargon, what the Fed is debating in plain sight are the specifics for how to give as much money as possible to some investors in the event of another recession, in the shortest time possible.
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Tuesday, May 07, 2019
US Federal Reserve Bank Vetoes Cain and Moore / Interest-Rates / US Federal Reserve Bank
By: BATR
If you ever had doubts just who is squarely in charge of the finances for the debt created U.S. Dollar currency, the nixing of Herman Cain and Stephen Moore for the Federal Reserve Board confirms that the Banksters are the real power. The Shadow Government is truly the elitists behind monetary hegemony that rules over government and economic policies. The institutions that shape and direct the financial dynasty of the reserve currency is outside the realm of Presidential compliance. Donald Trump has just experienced the push back from the Jackals of Jekyll Island.
Clearly the Federal Reserve 100 Years of Failure has been the single most destructive financial factor in history. Over the last century the Merchantry economy has been systematically dismantled in favor of the Corporatocracy. The Wall Street establishment has always opposed entrepreneurs unless they go public with shares that the Masters of the Universe can manipulate. Both Cain and Moore have a long record of media appearances that often vary from the establishment viewpoint.
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Tuesday, April 16, 2019
Trump May Regret His Fed Takeover Attempt / Politics / US Federal Reserve Bank
By: Patrick_Watson
Some things are too important to leave to politicians.
One such thing: the money supply. That’s why the Federal Reserve is an independent agency, at least in theory.
Presidents like this arrangement because it lets them disclaim responsibility when the Fed does something unpopular. But that only works if the president doesn’t even try to assert control.
Trying to influence the Fed, as Trump is doing, has three possible outcomes—and two of them are bad for Trump. Either…
Friday, April 12, 2019
The Fed Created an Economy of Zombies and Unicorns / Stock-Markets / US Federal Reserve Bank
By: John_Mauldin
Central bankers have a well-worn playbook for handling recessions.
Cut interest rates, increase liquidity, and otherwise shove capital into the private sector. This helps businesses hire more workers and raise wages. Then gradually remove all the stimulus as growth recovers.
This playbook truly fell apart in 2008. The system had so much debt that adding yet more of it didn’t have the desired effect.
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Wednesday, April 10, 2019
Is The Federal Reserve ‘Too Big To Fail’? / Interest-Rates / US Federal Reserve Bank
By: Kelsey_Williams
The term “too big to fail” refers to certain businesses whose viability is considered critical to the survival and effective operation of our economic system. These very large businesses are designated as too big to fail because their failure or bankruptcy would have disastrous consequences on the overall economy.
The potential effects are considered to be severe enough, and the costs so unbelievably large, that these businesses are afforded special attention and consideration in the form of bailouts and protection from creditors.
The expenses necessary in order to save a large institution from bankruptcy are considered less than the costs that would be incurred if the institution were allowed to fail. Active application and implementation of both alternatives were prominently featured in the financial crisis of 2008.
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Wednesday, April 03, 2019
Trump Readies Shake-up of Fed Banking Cartel / Interest-Rates / US Federal Reserve Bank
By: MoneyMetals
Establishment journalists, establishment economists, and establishment politicians are freaking out. It seems they can’t cope with the prospect of an outspoken monetary reformer potentially becoming the next member of the Federal Reserve Board of Governors.
President Donald Trump announced recently he would nominate longtime free-market advocate and close political ally Stephen Moore to a currently vacant seat at the Fed.
“Trump’s choice of former campaign adviser Stephen Moore to serve on the Federal Reserve Board is stirring misgivings among some bankers,” reports Politico.
“Economists are furious,” according to QZ. “The news has been met with a heady combination of derision, bafflement, and general hullaballoo, with Moore variously described as ‘a loyalist, not an expert’.”
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Tuesday, April 02, 2019
Why Is the Fed Paying So Much Interest to Banks? / Interest-Rates / US Federal Reserve Bank
By: Ellen_Brown
“If you invest your tuppence wisely in the bank, safe and sound, Soon that tuppence safely invested in the bank will compound, And you’ll achieve that sense of conquest as your affluence expands In the hands of the directors who invest as propriety demands.” — “Mary Poppins,” 1964
When “Mary Poppins” was made into a movie in 1964, Mr. Banks’ advice to his son was sound. The banks were then paying more than 5% interest on deposits, enough to double young Michael’s investment every 14 years.
Now, however, the average savings account pays only 0.10% annually—that’s one-tenth of 1%—and many of the country’s biggest banks pay less than that. If you were to put $5,000 in a regular Bank of America savings account (paying 0.01%) today, in a year you would have collected only 50 cents in interest.
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Monday, March 11, 2019
The Fed Is Playing a Dangerous Game / Interest-Rates / US Federal Reserve Bank
By: John_Mauldin
Two months ago, Fed Chair Jerome Powell set off a market panic.
He suggested the FOMC would do what it thinks is right and let asset prices go where they may.
They promised at least two if not three more rate hikes in 2019. The stock market fell out of bed.
Fast forward to now. The Fed has given up its tightening dreams and might even loosen policy. It is even (gasp!) losing its fear of inflation.
The problem is that preventing small “crises” on a regular basis eventually causes a very large crisis.
Wednesday, January 16, 2019
It’s Not Polite, but I’m Pretty Pissed at the Fed / Interest-Rates / US Federal Reserve Bank
By: John_Mauldin
This essay is going to insult a bunch of smart, maybe even brilliant, people. It is not polite nor is it politically correct. I will try to be better. But right now, I am pretty pissed.
Here’s the thing.
No serious scientist would run a two-variable experiment. By that I mean, you run an experiment with one variable to see what happens.
If you have two variables and something happens—either good or bad—you don’t know which variable caused it.
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Tuesday, January 08, 2019
Kendall and Hochberg: Interest Rates Win Again as Fed Follows Market / Interest-Rates / US Federal Reserve Bank
By: EWI
Most economists and financial analysts believe that central banks set interest rates.
For more than two decades, Elliott Wave International has tracked the relationship between interest rates set by the marketplace and interest rates set by the U.S. Federal Reserve and found that it's actually the other way around--the market leads, and the Fed follows.
The latest Federal Reserve rate decision on December 19 brought the usual breathless anticipation. Confusion reigned as the U.S. president as well as a former Fed board member publicly urged the U.S. central bank not to raise rates and many wondered if the Fed would "rescue" investors with a surprise decision to leave them unchanged. The Fed, however, did what it almost always does: it brought its rate in line with market rates.
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Sunday, January 06, 2019
The Fed IS the Ugly Truth / Politics / US Federal Reserve Bank
By: Raul_I_Meijer
This Fed thing just keeps going on, and it needs to stop. There is nothing in the discussion about the Federal Reserve these days that has any value other than it provides even more proof that the Fed has killed off the most essential elements of what once made the US economy function. All markets, stocks, bonds, housing markets, all price discovery, all murdered. No heartbeat. Pining for the fjords.
And instead of addressing that, and I’m not even talking about addressing fixing what is wrong, all I see is neverending stuff about Jay Powell using, or not using, terms such as “patient” or “accommodative”. Like any of it means anything coming from him and his ilk. Other than for making ‘investors’ a quick buck. Like a quick buck could ever trump the survival of entire market systems.
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Wednesday, December 26, 2018
Federal Reserve – Conspiracy Or Not? / Interest-Rates / US Federal Reserve Bank
By: Kelsey_Williams
Conspiracy surrounding the Federal Reserve is a subject of much debate. A controversial topic, yes; one which stirs the imagination of some, fires the suspicion of others, and provokes the declamation of not too few detractors.
From G. Edward Griffin/The Creature From Jekyll Island…
Read full article... Read full article...“Back in 1910, Jekyll Island was completely privately owned by a small group of millionaires from New York. We’re talking about people such as J. P. Morgan, William Rockefeller and their associates. This was a social club and it was called “The Jekyll Island Club.”
Friday, December 21, 2018
FOMC Update - Jerome ‘Dead Eye’ Powell / Interest-Rates / US Federal Reserve Bank
By: Gary_Tanashian
One of the most disturbing scenes in the series Breaking Bad was when Todd shoots and kills a boy on a dirt bike after he witnessed Heisenberg, Jesse and Todd heist 900 gallons of methylamine. Jesse: “Todd, that Opie Dead Eyed piece of shit…”
That is similar to the feeling I got after the Fed hiked the funds rate as expected, but then declined to offer the stock market much relief for its ongoing temper tantrum.
What’s this? The Fed is not doing as the vast majority of market participants expect it to do? The Fed is not taking active measures to boost asset prices?
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Thursday, December 13, 2018
Trump vs the Fed: Who Wins? / Interest-Rates / US Federal Reserve Bank
By: Richard_Mills
Who controls the US economy? The “power of the purse” resides within the US Congress and the powers to set fiscal and monetary policy are delegated to the US Central Bank, otherwise known as the Federal Reserve.
While the success of US Presidents often depends on how well the economy does during their terms, in fact they have little direct influence on it. The President can guide the economy and put his stamp on unlimited pieces of legislation, but he must work with Congress and the Federal Reserve in order to execute his agenda.
To demonstrate just how powerless the President is over the economy, you need only look at Article II of the US Constitution which outlines the responsibilities of the Executive Branch:
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Wednesday, November 07, 2018
Arguing About Fed Policy Is A Waste of Time / Interest-Rates / US Federal Reserve Bank
By: Kelsey_Williams
When government (or a President) claims that Federal Reserve policy is hurting the economy, they are either grandstanding, or are ignorant about the function and purpose of the Federal Reserve.
No one wants to see the economy suffer, anymore than they want to see a plague, or infectious disease, affect millions of people. And no President wants to be in office to preside over a recession or depression. But neither can they exercise any power or influence regarding the implementation of Fed policy; particularly when it comes to interest rates.
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Tuesday, November 06, 2018
Trump's War on the Fed / Politics / US Federal Reserve Bank
By: Ellen_Brown
October was a brutal month for the stock market. After the Federal Reserve’s eighth interest rate hike, on Sept. 26, the Dow Jones Industrial Average dropped more than 2,000 points, and the NASDAQ had its worst month in nearly 10 years. After the Dow lost more than 800 points on Oct. 10 and the S&P 500 suffered its first weeklong losing streak since Trump’s election, the president said, “I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy.” In a later interview on Fox News, he called the Fed’s rate hikes “loco.” And in a Wall Street Journal interview published on Oct. 24, Trump said he thought the biggest risk to the economy was the Federal Reserve, because “interest rates are being raised too quickly.” He also criticized the Fed and its chairman in July and August.
Monday, November 05, 2018
Is President Trump Right About the Fed? / Politics / US Federal Reserve Bank
By: Harry_Dent
While Larry Kudlow (Treasury Secretary and Chief Economic Cheerleader) assures us that Trump is NOT interfering with the Fed, our dear president has proclaimed that our Central Bank is “crazy” for raising rates.From his, ahem, unique world view, he believes they’re trying to wreck his new gravy train economy… the one he created with major tax cuts ($1.5 trillion), major repatriations from overseas ($2 trillion), deregulation, and a lot of positive talk about 4% to 5% growth again…
But, with no fear of sounding like a broken record: sustaining growth rates at that level are demographically IMPOSSIBLE!
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Tuesday, October 16, 2018
Federal Reserve And The Markets / Stock-Markets / US Federal Reserve Bank
By: Kelsey_Williams
Analysis and opinions of the financial markets vary depending on who is doing the analyzing. The most critical element that affects the song is the singer.
There is nothing wrong with that. But we should be aware that our own prejudice clouds our perspective. However, there is more that is not so obvious. With that in mind, lets take a look at things.
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Sunday, October 14, 2018
Fed is Doing More Than Just Raising Rates / Interest-Rates / US Federal Reserve Bank
By: Rodney_Johnson
Over the past month the 10-year Treasury bond yield has jumped from under 3.00% to 3.23%, sending tremors through the equity markets. By now you’ve heard/read/thought about the usual suspects.As interest rates move higher, equity investors searching for income finally (finally!) have a viable alternative to stocks.
As interest rates move higher, consumers using borrowed funds to purchase homes, cars, and stuff on credit cards will have to pay more, which should curb their economic appetite.
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Sunday, October 07, 2018
The Latest Double Standard from the Fed / Interest-Rates / US Federal Reserve Bank
By: Rodney_Johnson
Collectively, we just got screwed again, and I bet most people didn’t even know it. It happens so many times, particularly at the hands of the Federal Reserve, it’s hard to keep track.A new bank called The Narrow Bank, or TNB, recently applied for an account with the Fed.
This would give the bank recognition by a local reserve bank, in this case New York, and access to its services, like distribution of currency, check processing and other forms of electronic payments.
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