2019-06-19 09:27:00 Wed 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
San Francisco Fed CEO Mary Daly suggests that trade escalation is not the only risk in the global economy. Due to the current Sino-U.S. trade tension, the global economy seems to slow down quite a bit. Some other global economic issues call for resolution too. For instance, Brexit may result in negative consequences for Eurozone trade and financial capital exodus. Daly indicates that the U.S. economy may experience unforeseen challenges if business sentiment and economic data get out of sync. If business sentiment turns out to be negative, this negativity may become a self-fulfilling prophecy that may inadvertently lead to major fluctuations in real economic output.
Nevertheless, Daly reiterates that the U.S. economy operates near the long-term efficient level with 3.6% unemployment as inflation rises toward the 2% target. In the current macroeconomic scenario, the federal funds rate remains neutral. This outcome accords with the Federal Reserve dual mandate of both price stability and maximum sustainable employment.
The recent interest rate hikes help dampen extreme asset price gyrations and so contribute to financial market stabilization. At any rate, Daly emphasizes that it is important for the Federal Reserve to remain patient before the FOMC members consider the next interest rate adjustments.
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.
2018-09-29 12:39:00 Saturday ET

The Securities and Exchange Commission (S.E.C.) sues Elon Musk for his August 2018 tweet that he has secured external finance to convert Tesla into a privat
2022-02-02 10:33:00 Wednesday ET

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2022. As of early-January 2023, the U.S. Patent and Trademark O
2019-07-19 18:40:00 Friday ET

We can decipher valuable lessons from the annual letters to shareholders written by Amazon CEO Jeff Bezos. Amazon is highly customer-centric because the wor
2023-02-03 08:27:00 Friday ET

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2023. Our proprietary alpha investment model outperforms the ma
2025-07-26 09:26:00 Saturday ET

Nir Eyal and Ryan Hoover explain why keystone habits lead us to purchase products, goods, and services in our lives. The Hooked Model can help shine new lig
2023-08-14 09:25:00 Monday ET

Peter Isard analyzes the proper economic policy reforms and root causes of global financial crises of the 1990s and 2008-2009. Peter Isard (2005) &nbs