Tag Archives: FED

Federal Reserve Chair Janet Yellen said Tuesday that the central bank should continue to use interest payments on member bank reserve balances as its primary means of affecting short-term interest rates, rebuffing calls to return to more conventional monetary policy tools.... American BankerFed interest payments to banks are here to stay, Yellen says John Heltman

Ed Harrison looks at inversion historically.Credit Writedowns Why the flattening yield curve doesn’t worry me yetEdward Harrison

Mostly about John Taylor who seems to have made the final cut for Trump's short list to replace Janet Yellen, along with Jerome Powell, who is now a member of the Fed Board of Governors. Should Fed policy be rule-based (Taylor) or discretionary (Powell)? David Glasner argues against John Tayor and in doing so, gives us a close look at Taylor and his rule-based approach to monetary policy.Uneasy MoneyLarry Summers v. John Taylor: No Contest David Glasner

According to the minutes of the last meeting of the monetary policy committee of the US Federal Reserve Bank, the most powerful monetary authority in the world, the committee members are split and unclear on what to do. “Some participants who counselled patience expressed “concern about the recent decline in inflation” and said the Fed “could afford to be patient under current circumstances.” They “argued against additional adjustments” until the central bank was sure that inflation was on...

I came across this article by Kevin Warsh that appeared in the Wall Street Journal last August, 2016. The article was re-posted by GATA.ORG.As you may know, Warsh is the currently the favorite to take over as Fed Chair when Janet Yellen's term expires next February.If you read the article you will find that Warsh sort of understands that Fed policy is confused and focused on either the wrong things or, things which the Fed has no set of tools to accomplish. On the other hand he seems to lack...

I am writing this while waiting for a train at Victoria Station (London), which will take me to Brighton for tomorrow’s presentation at the British Labour Party Conference.  The last several days I was in Kansas City for the inaugural International Modern Monetary Theory Conference, which attracted more than 200 participants and was going well when I left it on Saturday. A great step forward. I believe there will be video for all sessions available soon just in case you were unable to...

No big surprises. Calculated Risk FOMC Projections and Press Conference Link FOMC Statement: "In October, the Committee will initiate the balance sheet normalization program" Bill McBride

The topic centres on an agreement between the US Federal Reserve System (the central bank federation in the US) and the US Treasury to peg the interest rate on government bonds in 1942. What the agreement demonstrated is that a central bank can always control yields on government bonds, which includes keeping them at zero (or even negative in the current case of Japan). What it demonstrates is that private bonds markets, no matter how much they might huff and puff about their own importance...

AbstractThis paper reexamines the forecasting ability of Phillips curves from both an uncon- ditional and conditional perspective by applying the method developed by Giacomini and White (2006). We find that forecasts from our Phillips curve models tend to be unconditionally inferior to those from our univariate forecasting models. Significantly, we also find conditional inferiority, with some exceptions. When we do find improvement, it is asymmetric – Phillips curve forecasts tend to be...

NEP’s Bill Black appears on The Real News Network discussing the investigation into leaking of inside information and how it shows how banks and the Federal Reserve are riddled with conflicts of interest. You can view here with transcript. [embedded content]