2017-03-27 06:33:00 Mon ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
The highly probable shrinkage of Fed's $4.5 billion balance sheet will phase out over the next few months before the next leadership transition.
This shrinkage accords with the Federal Reserve's likely interest rate hike later in 2017.
Targeting inflation at a little over 2% per annum, the Federal Reserve reacts to high stock market momentum with a more hawkish monetary policy stance.
Favorable macroeconomic data such as better industrial production growth and manufacturing job creation support the next interest rate increase.
In response, the U.S. greenback tends to appreciate while American economic growth rebounds to attract capital flows back from emerging economies at the medium stage of the global financial cycle.
With free international capital flows and flexible exchange rates, the current Fed interest rate hike is likely to lead non-U.S. monetary contraction worldwide over the next few years (aka the Mundellian international-finance trilemma).
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2021-02-01 10:19:00 Monday ET
In recent times, the International Monetary Fund (IMF) predicts that the fiscal-debt-to-GDP ratio of most rich economies would rise from 95% in 2018 to 135%
2022-10-05 08:24:00 Wednesday ET
Precautionary-motive and agency reasons for corporate cash management Bates, Kahle, and Stulz (JF 2009) empirically find that public firms have doubled t
2017-07-01 08:40:00 Saturday ET
The Economist interviews President Donald Trump and spots the keyword *reciprocity* in many aspects of Trumponomics from trade and taxation to infrastructur
2019-08-30 11:35:00 Friday ET
The conventional wisdom suggests that chameleons change their skin coloration to camouflage their presence for survival through Darwinian biological evoluti
2023-04-28 16:38:00 Friday ET
Peter Schuck analyzes U.S. government failures and structural problems in light of both institutions and incentives. Peter Schuck (2015) Why
2018-09-01 07:34:00 Saturday ET
As the French economist who studies global economic inequality in his recent book *Capital in the New Century*, Thomas Piketty co-authors with John Bates Cl