2019-02-04 07:42:00 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
Federal Reserve remains patient on future interest rate adjustments due to global headwinds and impasses over American trade and fiscal budget negotiations. Fed Chair Jerome Powell pledges that future interest rate adjustments react to generic macroeconomic conditions.
Patience can be a key virtue. U.S. economic history suggests that the federal funds rate tends to peak in the reasonable range of 5.5%-6.5%. In comparison, several eminent economists such as former Fed Chairs Janet Yellen and Ben Bernanke suggest that we may enter a new era of persistently low interest rates. This putative scenario can be good news for debtors such as American households and federal government, the latter of which now carries about $16 trillion public debt. The same putative scenario may become bad news for most U.S. retirees who live off meager interest income on their deposits and annuities. This low-interest-rate environment can inadvertently continue to inflate asset prices. As a result, U.S. stocks soar in response to the dovish monetary policy stance with balance sheet flexibility. As the Federal Reserve keeps the key interest rate in the target range of 2.25%-2.5%, the trade-weighted average U.S. dollar index plummets to 91%. The recent greenback depreciation reflects a major reversal of U.S. credit flows in comparison to the 95% dollar peak back in January 2017.
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.
2022-04-05 17:39:00 Tuesday ET
Corporate diversification theory and evidence A recent strand of corporate diversification literature spans at least three generations. The first generat
2019-11-11 09:36:00 Monday ET
Apple upstream semiconductor chipmaker TSMC boosts capital expenditures to $15 billion with almost 10% revenue growth by December 2019. Due to high global d
2017-07-25 10:44:00 Tuesday ET
NerdWallet's new simulation suggests that a 25-year-old millennial who earns an inflation-free base salary of $40,456 and saves 15% each year faces a 99
2018-02-19 08:39:00 Monday ET
Snap cannot keep up with the Kardashians because its stock loses market value 7% or $1 billion after Kylie Jenner tweets about her decision to leave Snapcha
2018-12-29 09:32:00 Saturday ET
Andy Yeh Alpha (AYA) AYA Analytica financial health memo (FHM) podcast channel on YouTube December 2018 AYA Analytica is our online regular podcast and news
2023-04-21 12:39:00 Friday ET
Angus Deaton analyzes the correlation between health and wealth in light of the economic origins of inequality worldwide. Angus Deaton (2015)