Archive for Federal Reserve
My Thoughts on Recent Fed Announcements
At Mises.org. An excerpt: Now what the Fed announced last week is that it will itselfenter the repo market and be prepared to offer up to $1.5 trillion in (newly created) US dollars in order to allow institutions to pledge their Treasurys as collateral and borrow such vast sums. But these transactions won’t be overnight loans; instead, the $1.5 […]
Read moreBMS Ep. 10: This One Simple Fed Trick Earns the Bankers Billions
You won’t believe what Powell did next! He didn’t know the cameras were still rolling!
Read moreMarket Monetarists: The Good, the Bad, and the Ugly
Actually my title doesn’t really make sense; I couldn’t think of anything clever. I really liked this David Beckworth post, talking about the breakdown of the Fed’s “floor system.” In fact, I liked it so much that I based my article in the forthcoming issue of The Lara-Murphy Report on it. So score +1 for […]
Read moreThe Myth of Fed Independence
My latest article is feisty. It sounds like I’m defending Trump and then…BAM! I go full Rothbard. Trump committed a faux pas with his public complaints about the Fed. But his actual “mistake” was in letting the American people in on a dirty secret: The central bank is by its very nature a political institution […]
Read moreScott Sumner Slips
Long-time readers know that I am not a fan of Scott Sumner’s signature idea, namely that the Great Recession was caused by Ben Bernanke’s tight monetary policy. However, if you’re really an expert on my writings, you’ll know that I’ve said Sumner would be a very formidable debating opponent–much more than Krugman. Indeed, when I […]
Read moreAm I Just a Permabear?
In the comments of this post, Gene Callahan doesn’t shirk his duty of constantly assuming I started reading financial economics last Tuesday: But Bob, weren’t you predicting market disaster when the Dow was at 6000? (I was buying at that point, fwiw.) Weren’t you predicting it through the whole rise of the last seven years? […]
Read moreTreasury Yield Curve Over the Last Year
This might be useful to some of you: It’s obvious in the above that the Fed action has raised very short term rates while bringing down longer rates. (To explain some of the movements earlier, remember that markets thought the Fed was first going to raise the fed funds target in September, and then it […]
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