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.
2018-08-13 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
2019-03-05 10:40:00 Tuesday ET

We may need to reconsider the new rules of personal finance. First, renting a home can be a smart money move, whereas, buying a home cannot always be a good
2019-11-17 14:43:00 Sunday ET

New computer algorithms and passive mutual fund managers run the stock market. Morningstar suggests that the total dollar amount of passive equity assets re
2017-09-19 05:34:00 Tuesday ET

Facebook, Twitter, and Google executives head before the Senate Judiciary Committee to explain the scope of Russian interference in the U.S. presidential el
2018-02-15 07:43:00 Thursday ET

Fed minutes reflect gradual interest rate normalization in response to high inflation risk. FOMC members revise up the economic projections made at the Dece
2020-05-28 15:37:00 Thursday ET

Platform enterprises leverage network effects, scale economies, and information cascades to boost exponential business growth. Laure Reillier and Benoit