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.
2018-08-13 12:39:00 Monday ET
White House chief economic adviser Larry Kudlow points out that the recent U.S. dollar strength shows a clear sign of investor confidence and optimism. Gree
2019-09-25 15:33:00 Wednesday ET
Product market competition and online e-commerce help constrain money supply growth with low inflation. Key e-commerce retailers such as Amazon, Alibaba, an
2023-02-21 08:27:00 Tuesday ET
Mark Granovetter follows the key principles of modern economic sociology to analyze social relations and economic phenomena. Mark Granovetter (2017) &
2017-11-05 09:45:00 Sunday ET
President Trump criticizes the potential media merger between AT&T and Time Warner, the latter of which owns the anti-Trump media network CNN. President
2023-01-09 10:31:00 Monday ET
Response to USPTO fintech patent protection As of early-January 2023, the U.S. Patent and Trademark Office (USPTO) has approved our U.S. utility patent
2019-08-16 17:37:00 Friday ET
Amazon faces E.U. antitrust scrutiny over the current e-commerce use of merchant data. The European Commission probes into whether Amazon uses key third-par