2019-11-15 13:34:00 Fri 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 Economist offers a special report that the new normal state of economic affairs shines fresh light on the division of labor between central banks and governments. The recent U.S. economic outlook combines full employment with low inflation, and this rare combination accords with the Federal Reserve dual mandate of maximum sustainable employment and price stabilization. The New Keynesian Phillips Curve becomes flat in recent times, and there is no inexorable trade-off between inflation and unemployment. The U.S. unemployment rate reaches 3.5% or the lowest level since 1969. The core inflation rate hovers in the range of 1.5%-1.7% or well below the 2% target inflation rate. On the one hand, the Federal Reserve may continue to reduce the interest rate to help sustain the U.S. economic expansion and stock market rally in response to a vocal president.
On the other hand, the dovish interest rate cuts suggest that the U.S. central bank may have fewer monetary policy levers to cope with the next economic recession. Meanwhile, U.S. Treasury continues to offer Americans fiscal stimulus packages in the generic form of both tax incentives and infrastructure expenditures. Whether fiscal deficits can cause higher inflation remains a major economic policy concern.
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.
2018-06-17 10:35:00 Sunday ET

In the past decades, capital market liberalization and globalization have combined to connect global financial markets to allow an ocean of money to flow th
2019-04-07 13:39:00 Sunday ET

CNBC news anchor Becky Quick interviews Warren Buffett in early-2019. Buffett explains the fact that book value fluctuations are a metric that has lost rele
2023-08-28 08:26:00 Monday ET

Jared Diamond delves into how some societies fail, succeed, and revive in global human history. Jared Diamond (2004) Collapse: how societies
2019-06-25 10:34:00 Tuesday ET

Investing in stocks is the best way for people to become self-made millionaires. A recent Gallup poll indicates that only 37% of young Americans below the a
2018-07-19 18:38:00 Thursday ET

Goldman Sachs chief economist Jan Hatzius proposes designing a new Financial Conditions Index (FCI) to be a weighted-average of interest rates, exchange rat
2019-09-09 20:38:00 Monday ET

Harvard macrofinance professor Robert Barro sees no good reasons for the recent sudden reversal of U.S. monetary policy normalization. As Federal Reserve Ch